Final answer:
Neoliberal policies contribute to the expansion of informal labor by reducing public sector employment and creating conditions that can discourage formal labor demand and supply. A reevaluation of government programs is necessary to mitigate these effects without overly discouraging labor supply.
Step-by-step explanation:
According to Samson, the expansion of informal labor is closely related to neoliberalism. Neoliberal policies, which prioritize market deregulation, privatization, and a reduction in government spending, tend to lead to a reduction in public sector employment. This shift contributes to the expansion of informality because workers who are displaced from public sector jobs or are unable to find formal employment are often forced into informal arrangements where they lack legal and social protections.
These neoliberal policies can discourage the demand for labor by making it more difficult for businesses to begin or expand, leading to an increase in unemployment. Additionally, the design of government programs may need to be reassessed so they do not discourage people from seeking employment, while balancing the trade-offs involved with providing assistance and protection to the workforce.