Indirect Job Creation and the Informal Sector in Mexico
AbstractThis paper analyzes the effects of localized labor demand shocks in the tradable sector, such as the establishment of a large tradable firm in a municipality, over nontradable formal and informal jobs in the case of Mexico. Results indicate that locations that experienced this shock have between 8 and 13 thousand more jobs than other municipalities over a ten--year period. Indirect job creation is similar in both the formal and the informal sectors, but informality appears to be more vulnerable to negative shocks. Furthermore, the effects of shocks are symmetric in the formal sector but not in the informal, where negative shocks have greater effects over nontradable employment.
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Bibliographic InfoPaper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0153.
Length: 27 pages
Date of creation: Jan 2014
Date of revision:
Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-08 (All new papers)
- NEP-IUE-2014-03-08 (Informal & Underground Economics)
- NEP-LAB-2014-03-08 (Labour Economics)
- NEP-LMA-2014-03-08 (Labor Markets - Supply, Demand, & Wages)
- NEP-URE-2014-03-08 (Urban & Real Estate Economics)
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