Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico
AbstractThis article offers an alternative to the traditional dualistic view of the relationship between formal and informal labor markets. For many workers inefficiencies in formal sector protections and low levels of labor productivity may make informal sector employment a desirable alternative to formal sector employment. The analysis offers the first study of worker transitions between sectors using detailed panel data from Mexico and finds little evidence in favor of the dualistic view. Traditional earnings differentials cannot prove or disprove segmentation in the developing-country context. The patterns of worker mobility do not suggest a rigid labor market or one segmented along the formal/informal division. Copyright 1999 by Oxford University Press.
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Bibliographic InfoArticle provided by World Bank Group in its journal World Bank Economic Review.
Volume (Year): 13 (1999)
Issue (Month): 2 (May)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- To understand earnings in Africa, we need to look past the formal/informal divide
by Andrew Kerr in The CSAE Blog on 2012-06-01 11:47:25
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