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¿Es la política social una causa de la informalidad en México?

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Author Info

  • Gerardo Esquivel Hernández

    ()
    (El Colegio de México.)

  • Juan Luis Ordaz-Díaz

    (CEPAL.)

Abstract

Levy (2008) has suggested that the expansion of non-targeted social programs could be inducing an increase in economic informality in countries like Mexico. This hypothesis, however, assumes the existence of integrated and competitive labor markets in the economy. In this work we test this assumption for the Mexican case and we find that there is a wage premium in Mexico’s formal labor market. This means that an individual earns a higher wage when she works in the formal sector of the economy than an individual with similar characteristics that works at the informal sector. We therefore conclude that Mexico’s labor market is segmented and that an increase in social programs is not causing an increase in informality in the country.

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Bibliographic Info

Article provided by Universidad Autonoma de Nuevo Leon, Facultad de Economia in its journal Ensayos Revista de Economia.

Volume (Year): XXVII (2008)
Issue (Month): 1 (May)
Pages: 1-32

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Handle: RePEc:ere:journl:v:xxvii:y:2008:i:1:p:1-32

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Related research

Keywords: informal sector; dual economy; social policy;

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References

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  1. Amaral, Pedro S. & Quintin, Erwan, 2006. "A competitive model of the informal sector," Journal of Monetary Economics, Elsevier, Elsevier, vol. 53(7), pages 1541-1553, October.
  2. Zhao, Zhong, 2005. "Sensitivity of Propensity Score Methods to the Specifications," IZA Discussion Papers 1873, Institute for the Study of Labor (IZA).
  3. Gasparini Leonardo & Leonardo Tornaroli, 2009. "Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
  4. Sebastian Galiani & Federico Weinschelbaum, 2007. "Modeling Informality Formally: Households and Firms," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0047, CEDLAS, Universidad Nacional de La Plata.
  5. Douglas Marcouiller, S.J. & Veronica Ruiz de Castilla & Christopher Woodruff, 1995. "Formal Measures of the Informal Sector Wage Gap in Mexico, El Salvador, and Peru," Boston College Working Papers in Economics, Boston College Department of Economics 294., Boston College Department of Economics.
  6. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
  7. Levy, Santiago, 2007. "¿Pueden los programas sociales disminuir la productividad y el crecimiento económico? Una hipótesis para México," El Trimestre Económico, Fondo de Cultura Económica, Fondo de Cultura Económica, vol. 0(295), pages 491-540, julio-sep.
  8. Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," World Bank Economic Review, World Bank Group, World Bank Group, vol. 13(2), pages 275-302, May.
  9. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, American Economic Association, vol. 60(1), pages 126-42, March.
  10. Pratap, Sangeeta & Quintin, Erwan, 2006. "Are labor markets segmented in developing countries? A semiparametric approach," European Economic Review, Elsevier, Elsevier, vol. 50(7), pages 1817-1841, October.
  11. Gong, Xiaodong & van Soest, Arthur, 2002. "Wage differentials and mobility in the urban labour market: a panel data analysis for Mexico," Labour Economics, Elsevier, Elsevier, vol. 9(4), pages 513-529, September.
  12. Pradhan, M.P. & Soest, A.H.O. van, 1993. "Formal and informal sector employment in urban areas of Bolivia," Discussion Paper, Tilburg University, Center for Economic Research 1993-11, Tilburg University, Center for Economic Research.
  13. Rauch, James E., 1991. "Modelling the informal sector formally," Journal of Development Economics, Elsevier, Elsevier, vol. 35(1), pages 33-47, January.
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Citations

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Cited by:
  1. Arias-Vazquez, Francisco Javier & Azuara, Oliver & Bernal, Pedro & Heckman, James J. & Villarreal, Cajeme, 2010. "Policies to Promote Growth and Economic Efficiency in Mexico," IZA Discussion Papers 4740, Institute for the Study of Labor (IZA).
  2. Azuara, Oliver & Marinescu, Ioana, 2011. "Informality and the expansion of social protection programs," MPRA Paper 35073, University Library of Munich, Germany.
  3. Mariana Pereira-López, 2014. "Indirect Job Creation and the Informal Sector in Mexico," Working Paper Series Sobre México 2014001, Sobre México. Temas en economía.
  4. Isidro Soloaga & Mariana Pereira, 2013. "Local Multipliers and the Informal Sector in Mexico 2000-2010," Working Papers, Universidad Iberoamericana, Department of Economics 0513, Universidad Iberoamericana, Department of Economics.
  5. Raymundo M. Campos-Vázquez & Melissa A. Knox, 2010. "Social protection programs and employment: The case of Mexico’s “Seguro Popular” program," Serie documentos de trabajo del Centro de Estudios Económicos, El Colegio de México, Centro de Estudios Económicos 2010-14, El Colegio de México, Centro de Estudios Económicos.

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