Family farmers’ reluctance toward incorporating into the formal economy

Abstract

Informal economy is particularly prevalent in small-scale farming, yet little attention has been paid to it so far. This article aims to contribute to a further understanding of this phenomenon. A survey of family farmers located in the Metropolitan Region of Santiago, Chile, was conducted. The data collected were processed using descriptive and multivariate techniques, factor and cluster analysis. Results show that farmers perceive formalization as a complex process which entails unpleasant obligations, and that they do not consider it necessary. There are some distinctions, however, that allow two clusters to be identified: “Favorable” (18.82 %) and “Reluctant” (81.18 %).

Keywords

• farmer's attitudes
• chile
• small-scale and family farming
• informal economy