Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152343
Authors: 
Argente, David
García, Jorge
Year of Publication: 
2015
Citation: 
[Journal:] IZA Journal of Labor Economics [ISSN:] 2193-8997 [Volume:] 4 [Year:] 2015 [Pages:] 1-12
Abstract: 
We use the Mexican labor market structure to price the set of fringe benefits that household heads receive when formally employed. We exploit longitudinal, nationally-representative information on household heads who are formal, informal, or switch status at least once in our data. Using monthly labor income and an efficient markets hypothesis, we identify a standard linear model which accounts for time-variant household heads' characteristics and household level and time fixed effects. Under the usual strict-exogeneity assumption, we find that the price of fringe benefits is approximately 7.9% of the average monthly labor income of informal workers, or $217 USD.
Subjects: 
Dual labor market
Fringe benefits
Informal labor market
JEL: 
D4
J3
J4
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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