By choice or by force?: Uncovering the nature of informal employment in urban Mexico

Robert Duval-Hernandez

No wp-2020-151, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Using a special module of the 2015 Mexican Labour Force Survey with information on workers' preferences for jobs with social security coverage, I estimate that 80 per cent of informal workers in large urban areas would prefer to work in a job that provides them with such coverage. A discrete choice econometric model which distinguishes between wanting a formal job and the probability of getting one shows that schooling increases the chances of being hired in formal employment and of having higher earnings in it.

Keywords: Informal work; Labour market; Labour market segmentation; Rationing; Informality (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-dcm, nep-dev and nep-iue
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Citations: View citations in EconPapers (1)

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