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Informal Labor Markets And On-The-Job Training: Evidence From Wage Data

Author

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  • Javier Cano-Urbina

Abstract

type="main" xml:id="ecin12279-abs-0001"> This study examines whether informal sector jobs are a source of training for young less-educated workers. Controlling for worker and job characteristics, it is found that, in the early years of workers' careers in Mexico, wage growth in the informal sector is higher than in the formal sector. This result is consistent with general human capital investment on-the-job if the informal labor market is more competitive than the formal labor market due to frictions generated by labor regulations. (JEL O17, J24, J310)

Suggested Citation

  • Javier Cano-Urbina, 2016. "Informal Labor Markets And On-The-Job Training: Evidence From Wage Data," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 25-43, January.
    • Handle: RePEc:bla:ecinqu:v:54:y:2016:i:1:p:25-43
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    File URL: http://hdl.handle.net/10.1111/ecin.2016.54.issue-1
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    Citations

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    Cited by:

    1. Cirelli, Fernando & Espino, Emilio & Sánchez, Juan M., 2021. "Designing unemployment insurance for developing countries," Journal of Development Economics, Elsevier, vol. 148(C).
    2. María Padilla-Romo & Francisco Cabrera-Hernández, 2018. "The Effect of Children's Time in School on Mothers' Labor Supply: Evidence from Mexico's Full-Time Schools Program," Working Papers 2018-04, University of Tennessee, Department of Economics.
    3. María Padilla‐Romo & Francisco Cabrera‐Hernández, 2019. "Easing The Constraints Of Motherhood: The Effects Of All‐Day Schools On Mothers' Labor Supply," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 890-909, April.
    4. Javier Cano-Urbina & Patrick L. Mason, 2016. "Acculturation and the labor market in Mexico," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-29, December.

    More about this item

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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