Informality, Economic Complexity, and Internalization of Rules

This research aims to find out the relationship between informality and the internalization of the rules of behavior that are required for complexity in the economic situation, as a better knowledge is required for formalization policy to have a greater impact. First, we include a theory that includes both types of motivation, intrinsic and extrinsic. This theory is proposed by the self-determination theory or organismic integration theory. Second, we have argued that the motivation to formalize is intrinsic to greater cultural capacity. Individuals gradually internalize rules of behavior that have repercussions on social dynamics. Third, the composition and characteristics of the families in the study sample seem to show that some factors increase the propensity for informality. We observed that the group of people with a lower educational level are the ones who are more likely to belong to the informal labor market. These results are consistent with the literature. Multivariate probit regression was used to examine these factors