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Informalidad y dualismo en la economía mexicana

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  • Alicia Puyana

    ()
    (FLACSO)

  • Jose Romero

    ()
    (El Colegio de México)

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    Abstract

    This paper analyzes the trajectory of informality as it has evolved since 1950. For doing so, the analytic frame elaborated by Arthur Lewis was applied. For Lewis, the informal employment results from the incapacity of an economy, with unlimited labour supply, to absorb all the working force at a given equilibrium salary. Therefore, in this essay, informality represents the residual labour that remains stacked in the non-modern sector, once the modern sector has absorbed all the labour it can employed at a given equilibrium wage and available capital. The analysis starts with a mathematical formalization of the Lewis model and proceeds to evaluate one of its main conclusions using observed data of the Mexican economy. The model accurately represents the stylized facts of the economy and allows concluding that, after the introduction of the structural reforms, the modern sector of the Mexican economy experienced a large increase in capital intensity which enlarged its capital/labour ratio and inflated the costs of generating formal employment. In these conditions, and taking into consideration the meagre investments registered during the last two decades it is not surprising the immovability of the share of formal in total employment as well as the almost negligible increases in total labour productivity and total income per head.

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    File URL: http://cee.colmex.mx/documentos/documentos-de-trabajo/2012/dt201211.pdf
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    Bibliographic Info

    Paper provided by El Colegio de México, Centro de Estudios Económicos in its series Serie documentos de trabajo del Centro de Estudios Económicos with number 2012-11.

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    Date of creation: May 2012
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    Handle: RePEc:emx:ceedoc:2012-11

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    Web page: http://www.colmex.mx/centros/cee/
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    Keywords: employment; informality; dualism; productivity;

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    1. Ihrig, Jane & Moe, Karine S., 2004. "Lurking in the shadows: the informal sector and government policy," Journal of Development Economics, Elsevier, vol. 73(2), pages 541-557, April.
    2. Kim, Jae-Young, 2000. "Detection of change in persistence of a linear time series," Journal of Econometrics, Elsevier, vol. 95(1), pages 97-116, March.
    3. Auriol, Emmanuelle & Warlters, Michael, 2004. "Taxation Base in Developing Countries," IDEI Working Papers 292, Institut d'Économie Industrielle (IDEI), Toulouse.
    4. Gourinchas, Pierre-Olivier & Jeanne, Olivier, 2007. "Capital Flows to Developing Countries: The Allocation Puzzle," CEPR Discussion Papers 6561, C.E.P.R. Discussion Papers.
    5. Roxana Gutierrez-Romero, 2010. "The Dynamics of the Informal Economy," Economics Series Working Papers CSAE WPS/2010-07, University of Oxford, Department of Economics.
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    7. Gorana Krstic & Peter Sanfey, 2007. "Mobility, poverty and well-being among the informally employed in Bosnia and Herzegovina," Working Papers 101, European Bank for Reconstruction and Development, Office of the Chief Economist.
    8. Galli, Rossana & Kucera, David, 2004. "Labor Standards and Informal Employment in Latin America," World Development, Elsevier, vol. 32(5), pages 809-828, May.
    9. Inder, B. A., 1984. "Finite-sample power of tests for autocorrelation in models containing lagged dependent variables," Economics Letters, Elsevier, vol. 14(2-3), pages 179-185.
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    11. Amaral, Pedro S. & Quintin, Erwan, 2006. "A competitive model of the informal sector," Journal of Monetary Economics, Elsevier, vol. 53(7), pages 1541-1553, October.
    12. Kirkpatrick, Colin & Barrientos, Armando, 2004. "The Lewis Model After Fifty Years," Development Economics and Public Policy Working Papers 30550, University of Manchester, Institute for Development Policy and Management (IDPM).
    13. Donald W.K. Andrews, 1990. "Tests for Parameter Instability and Structural Change with Unknown Change Point," Cowles Foundation Discussion Papers 943, Cowles Foundation for Research in Economics, Yale University.
    14. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
    15. M. Anne Hill, 1989. "Female Labor Supply in Japan: Implications of the Informal Sector for Labor Force Participation and Hours of Work," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 143-161.
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