The analysis of labor markets is crucial to understand the economic development of a country. Thus, one of the main challenges which developing economies are facing is the high degree of informality that characterizes their labor markets. In this context, the use of economic experiments is a convenient alternative to study the dynamics among workers, since these experiments allow the understanding of the way preferences define their behaviours and interactions in their work environment. The purpose of this work was to review the state of the art on labor dynamics and informality in developing countries in the field of experimental economics. After a selective literature review, three broad categories through which labor markets have been analyzed and explored in these countries were identified: attitudes toward risk, social preferences and attitudes toward competition.