Job Stability and Labor Mobility in Urban Mexico: A Study Based on Duration Models and Transition Analysis
Can the relatively slow growth of the formal sector in Mexico during the 1990s be attributed to a rigid labor market and to low turnover rates? Is the increasing share of workers in the informal sector and of self-employed workers evidence of market segmentation, and hence a source of inequality and poverty? Or, as suggested by Maloney (1997), could the relatively large and symmetric flows of workers among all sectors (formal, informal, self-employed, unemployed, etc. ) be more consistent with a well-integrated market where workers search across sectors for job opportunities than one where informal workers seek permanent status in the formal sector and stay until they retire?  Maloney, (1997, p. 13).
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