Competition, Cooperation, and Influence in the Informal Economy: Interest Representation in Informal Markets in Mexico City

Abstract

This article proposes that the specific conditions under which collective action happens in informal markets generate a non-linear relation between organizational density (the number of organizations representing a single constituency) and effective claim-making around common objectives, unlike the expectations of standard theories tailored to organizational activity in the formal sector. Informal workers’ capacity to demand resources from the government is best served by intermediate levels of organizational density, when organizations experience enough competition to make them responsive to their constituencies, but not so much that internal strife undermines their effectiveness in securing shared objectives. To test this argument, I leverage a mixed-methods approach to examine the case of informal workers’ organizational behavior in public and street markets in Mexico City.