Elote vendor’s career mirrors Mexico City’s informal economy
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For four decades, Don Pedro, a 54-year-old elote vendor, has travelled from Atlacomulco, México State, to Mexico City to sell corn on a street corner in the Condesa neighborhood.
He continues a family tradition, learning the business from his father and hoping his son will follow. Don Pedro’s business has thrived as Condesa became more fashionable, attracting both regular customers and tourists.
Don Pedro is part of Mexico’s large informal economy, which includes thousands of vendors commuting from México State into Mexico City. The International Labour Organization defines this sector as legal businesses operating outside formal regulations. While some criticize these vendors for avoiding taxes, the informal economy accounts for 62.7% of commercial establishments in Mexico City and roughly 25% of the national GDP. Dr.
Yerko Castro of the Universidad Iberoamericana explains the formal and informal economies are interconnected, with one supporting the other. Don Pedro operates with cash because his suppliers at the Central de Abasto, a large wholesale market, do not accept other forms of payment, creating a cycle. While operating without formal registration may lead to administrative issues, it isn't strictly illegal, and the Mexico City government offers permits that are difficult to obtain.
Ultimately, the informal economy is deeply embedded in Mexican culture and provides essential support for many families and communities.
