Abstract
The authors use an original cross-sectional data set to examine the impact of informal and flexible contractual arrangements on the wages of domestic workers hired by private employers in Portugal. OLS estimations suggest that formality benefits workers, whether they have a stable or a flexible contract. However, social and labour market processes help to shape and maintain inequality, especially for migrant workers. Although skills are undervalued and do not generate rewards, higher wages are identified for workers who are engaged in contingent work, work for multiple employers or provide care for the elderly. However, such workers are still subject to exploitation and insecurity.