Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83733
Authors: 
Alcaraz, Carlo
Chiquiar, Daniel
Ramos-Francia, Manuel
Year of Publication: 
2008
Series/Report no.: 
Working Papers, Banco de México 2008-06
Abstract (Translated): 
We estimate wage differentials across different sectors of the Mexican economy. The results suggest that the wage differential between the formal and informal sectors is significant and larger than the differential between industry and services. The findings suggest that significant differences in productivity levels between the formal and informal sectors could exist. This, in turn, might imply that the economy's aggregate productivity could be affected by the increase of the share of informal employment. The results also suggest that the main distortions in the Mexican labor market seem to be related more with labor regulations that affect the allocation of resources between formal and informal activities, than a result of intrinsic characteristics of the production processes in the industrial and service sectors.
Subjects: 
Informal Sector
Productivity
Labor Market Distortions
JEL: 
J24
J31
O17
Document Type: 
Working Paper
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