But registered workers also have to pay taxes! And in many countries those government benefits are a long way down the road in unstable political regimes. Argentina, for example, has expropriated or devalued pensions multiple times over just the past decade. I would say that European-style labor laws (when enforced), do provide a strong benefit to official/payroll labor, but many countries (including the US!) offer advantages to employees paid under the table/in cash.