Ethnicity and Informality: Employment Practices in Korean Wholesale Shops in the Argentine Garment Industry
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The prevalent concentration of certain immigrant groups in the apparel sector has led to the misconception that ethnic or cultural characteristics are the sole determinants of the industry’s informal business and employment practices. This research seeks to explore how informal employment practices have emerged and evolved within the Korean wholesale sector of the Argentine garment industry, challenging the notion that these practices are solely a result of ethnicity. Utilizing ethnographic research conducted in Argentina, the study shows that strong government policies and regulations regarding formal employment, as well as distinct working styles and cultures between Koreans and Argentines, have prompted Korean employers to adopt formal management practices with their Argentine employees. In contrast, they often prefer informal, trust-based labor relations with co-ethnic employees, relying on non-contractual employment arrangements. Additionally, the study reveals that Argentine entrepreneurs also exhibit a high degree of informality in employment, indicating that informal practices are not exclusive to immigrants or specific ethnic groups within the sector. The findings suggest that ethnic business practices and performances should be seen as the result of a complex interplay of individual, ethnic, and contextual factors, intricately intertwined with broader economic, social, and political conditions, rather than being simply categorized as formal or informal.
Abstract
The prevalent concentration of certain immigrant groups in the apparel sector has led to the misconception that ethnic or cultural characteristics are the sole determinants of the industry’s informal business and employment practices. This research seeks to explore how informal employment practices have emerged and evolved within the Korean wholesale sector of the Argentine garment industry, challenging the notion that these practices are solely a result of ethnicity. Utilizing ethnographic research conducted in Argentina, the study shows that strong government policies and regulations regarding formal employment, as well as distinct working styles and cultures between Koreans and Argentines, have prompted Korean employers to adopt formal management practices with their Argentine employees. In contrast, they often prefer informal, trust-based labor relations with co-ethnic employees, relying on non-contractual employment arrangements. Additionally, the study reveals that Argentine entrepreneurs also exhibit a high degree of informality in employment, indicating that informal practices are not exclusive to immigrants or specific ethnic groups within the sector. The findings suggest that ethnic business practices and performances should be seen as the result of a complex interplay of individual, ethnic, and contextual factors, intricately intertwined with broader economic, social, and political conditions, rather than being simply categorized as formal or informal.