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Job quality and labour market transitions: Evidence from Mexican informal and formal workers

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  • Emily Conover
  • Melanie Khamis
  • Sarah Pearlman

Abstract

In this paper we analyse informal work in Mexico, which accounts for the majority of employment in the country and has grown over time. We document that the informal sector is composed of two distinct parts: salaried informal employment and self-employment. Relative to self-employment and formal salaried employment, on average informal salaried workers have lower wages and lower job quality as measured by an index. Education plays a different role in job matches and job transitions, depending on the type of informal employment.

Suggested Citation

  • Emily Conover & Melanie Khamis & Sarah Pearlman, 2021. "Job quality and labour market transitions: Evidence from Mexican informal and formal workers," WIDER Working Paper Series wp-2021-23, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-23
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    References listed on IDEAS

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    1. Sehnbruch, Kirsten & González, Pablo & Apablaza, Mauricio & Méndez, Rocío & Arriagada, Verónica, 2020. "The Quality of Employment (QoE) in nine Latin American countries: A multidimensional perspective," World Development, Elsevier, vol. 127(C).
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    Cited by:

    1. Abel,Martin & Carranza,Eliana & Geronimo,Kimberly Jean & Ortega Hesles,Maria Elena, 2022. "Can Temporary Wage Incentives Increase Formal Employment ? Experimental Evidence from Mexico," Policy Research Working Paper Series 10234, The World Bank.
    2. Lourenco S. Paz, 2021. "How does import competition impact job type?," Economics Bulletin, AccessEcon, vol. 41(3), pages 2063-2020.
    3. Wang, Ge & Shi, Xinjie & Golley, Jane, 2024. "Feed the children, free the women? Evidence from the China rural nutrition improvement program," China Economic Review, Elsevier, vol. 87(C).
    4. Cabrera-Hernández, Francisco & Dustan, Andrew & Osuna-Gomez, Daniel & Padilla-Romo, María, 2026. "Marginal Admission to Elite High Schools: Long-run Effects on Labor Market Outcomes," IZA Discussion Papers 18369, IZA Network @ LISER.
    5. Heckl, Pia, 2024. "Import Shocks and Gendered Labor Market Responses: Evidence from Mexico," Labour Economics, Elsevier, vol. 88(C).
    6. Das, Papri, 2025. "Unlocking potentials: The impact of human capital investment in youth informal employment in emerging markets and developing economies," International Journal of Educational Development, Elsevier, vol. 116(C).
    7. Anna Fabry & Monica Schuster & Miet Maertens, 2024. "Decent and equal work in agri‐food systems: Evidence from Peru," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 803-830, June.
    8. Lourenco Paz, 2022. "Does age modulate the impact of import competition on job type?," Economics and Business Letters, Oviedo University Press, vol. 11(4), pages 161-171.

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