Informality is a serious concern for the national economy since it is a symptom of structural constraints such as large tax, bureaucratic, and regulatory burdens. It also negatively impacts the efficiency and functioning of the formal sector by distorting wages and prices [1]. Informality is high in Belize, largely due to an unsupportive business climate for entrepreneurs and micro, small, and medium enterprises (MSMEs). Unregularized migration is also a major contributor to informality, with undocumented immigrants forced to operate informally to avoid detection. The most recent labor force survey reveals that roughly 42% of all workers are informal workers [2]. Raising the minimum wage could potentially push some firms (especially MSMEs) into the informal sector.