Impact of Organizational Management and the Regulatory Framework on Informal Employment: An Analysis of Laws 100 of 1993 and 789 of 2002 in 23 Cities of Colombia (1994-2023)

Abstract

This article analyzes the behavior of informal employment across Colombia's 23 main cities and metropolitan areas over three decades (1994-2023), examining how the implementation of Law 100 of 1993 and Law 789 of 2002 transformed organizational management strategies and labor market structures. Through a longitudinal analysis of data from DANE’s Great Integrated Household Survey (GEIH) and retrospective series, the evolution of informality is studied as a strategic response by productive units to shifting hiring and social security costs. The results reveal a general downward trend since 2010, heavily conditioned by the maturation of business management models in urban centers. While cities like Bogotá, Medellín, and Manizales exhibit consolidated formalization processes with rates between 34% and 37% (2023), locations such as Sincelejo, Riohacha, and Valledupar reflect precarious and fragmented organizational management, with informality levels exceeding 65%. Findings suggest that the increase in parafiscal costs under Law 100 strained the financial management of organizations, leading to informal practices (1994-2002), whereas Law 789 of 2002 introduced human talent management based on flexibility, yielding heterogeneous effects on quality job creation. The study concludes with a multidimensional explanatory model that integrates regional development, human capital, organizational management maturity, institutional capacity, and gender equity as critical determinants of urban labor reality in Colombia.