This document studies the relationship of labor informality with productivity and labor flexibility using data by country. It is shown that labor flexibility and productivity are negatively related to labor informality, which suggests that when labor flexibility and productivity increase, less labor informality would be expected. The relationship between informality and labor flexibility is non-linear, with which informality could be reduced through greater labor flexibility, this effect being greater in economies with high labor rigidity. It is also found that productivity is more effective in its ability to reduce labor informality compared to labor flexibility.