Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/127668
Authors: 
Pereira-López, Mariana
Year of Publication: 
2014
Series/Report no.: 
Documento de Trabajo 153
Abstract: 
This 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.
Subjects: 
local multipliers
informal sector
agglomeration
pecuniary externalities
Mexico
JEL: 
J23
R11
R12
R23
Document Type: 
Working Paper

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