Other consequences of such misallocations may include labour market distortions (e.g. a large-sized informal economy), firm-level challenges in recruiting staff with appropriate skills, and high gender inequalities (OECD, 2016b). All of these are visible in Latin America. Estimates show that nearly 55% of workers in the region are informal (Bosch, Melguizo and Pages, 2013), and more than 35% of firms in most countries report difficulties recruiting adequately skilled labour, significantly above rates in other emerging regions such as East Asia and Pacific, Eastern Europe and Central Asia.