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103 Yale L.J. 2305 (1993-1994)
The Informal Economy in an Advanced Industrialized Society: Mexican Immigrant Labor in Silicon Valley

handle is hein.journals/ylr103 and id is 2319 raw text is: The Informal Economy in an

Advanced Industrialized Society:
Mexican Immigrant Labor in Silicon Valley
Christian Zlolniskit
INTRODUCTION
This Essay uses an ethnographic study of Mexican immigrants living in a
low-income neighborhood in San Jose, California to demonstrate the
relationship between urban poverty and two types of labor in the informal
sector: subcontracting of unskilled labor and small-scale vending.' During the
1980's, many of Silicon Valley's manufacturing and service industries
restructured their operations, moving toward greater decentralization and labor
flexibility. Part of this restructuring was accomplished by subcontracting work
that had previously been performed in-house. Widespread subcontracting has
led to the expansion of the informal labor market-which employs largely
immigrant workers under poor working conditions-and, in turn, to
deteriorated working conditions in the formal labor market. Because many
workers now earn lower pay and suffer more frequent periods of
unemployment, the class labelled the new working poor has expanded.
Immigrant workers have adapted to the lower incomes their regular jobs now
pay by engaging in another type of informal economic activity-small-scale
vending within their home neighborhoods. Vending has received even less
t Research Fellow, Center for U.S.-Mexican Studies, University of California at San Diego; Ph.D.
candidate, Department of Anthropology, University of California at Santa Barbara. This research was
supported by a grant from the California Policy Seminar. The writing was made possible by a Visiting
Researcher Grant from the Center for U.S.-Mexican Studies, University of California at San Diego. I
sincerely wish to thank Leslie Salzinger, a researcher at the Center for U.S.-Mexican Studies, for invaluable
comments on my work and her editorial help. My thanks also to the editorial team of the Yale Law Journal,
particularly to Stephen F. Diamond, for helpful editorial suggestions.
1.    The bulk of the data on which this Essay is based was collected through intensive fieldwork
conducted in San Jose from November 1991 to June 1993. Information on the informal economy was part
of a broader ethnographic study of the working and living conditions of Mexican immigrants in a low-
income neighborhood in San Jose. For the study, I selected twenty-two families who live in the barrio to
study in detail, collecting information on the immigration and labor histories of their members, formal and
informal economic activities, household organizational strategies, family and social networks, and other
topics related to their economic and social organizational strategies. Intensive and intimate interaction with
these families allowed me to observe directly a number of informal economic activities which form the
basis for this essay.
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