Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129955
Authors: 
Alcaraz, Carlo
Chiquiar, Daniel
Salcedo, Alejandrina
Year of Publication: 
2015
Series/Report no.: 
Working Papers, Banco de México 2015-25
Abstract: 
In developing countries, some workers have formal jobs while others are occupied in informal positions. One view regarding this duality suggests that sectors are segmented, which means that a worker in the informal sector identical to another in the formal sector cannot get a formal position due to entry barriers. A second view states that workers self-select into informal jobs. Previous research suggests that these two situations may coexist in the same labor market. In this paper we identify the proportion of informal workers who are in each situation for the case of Mexico. Using a simple model of self-selection with entry barriers into the formal sector, we estimate that between 10 and 20 percent of informal workers would prefer to have a formal job. While this result provides evidence of the presence of some segmentation in the Mexican labor market, it suggests that an important proportion of workers in the informal sector self-select into it.
Subjects: 
Informality
Segmentation
Mexico
Labor Market
JEL: 
J42
J46
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
440.62 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.