In this paper an analysis of the labor informality and the informal settlements is
carried out, together with their characteristics, dynamics, the relationship between
them and their main influential factors. The results show systematic reductions in
each of them since 2009, showing regional differences and a strong evidence of
persistence, where high, medium, and low informality events in the cities tend to
remain over time. In addition, it was found a close relationship between the two
informalities, in the short and the long run, where the probability of being affected
by one of them increases with the presence of the other. Within the main influential
factors of these two phenomena we found income, household size, education and
the firm’s economic activity