INFORMAL LABOR MARKETS AND ON-THE-JOB TRAINING: EVIDENCE FROM WAGE DATA

Javier Cano-Urbina ()

Economic Inquiry, 2016, vol. 54, issue 1, 25-43

Abstract: type="main" xml:id="ecin12279-abs-0001"> This study examines whether informal sector jobs are a source of training for young less-educated workers. Controlling for worker and job characteristics, it is found that, in the early years of workers' careers in Mexico, wage growth in the informal sector is higher than in the formal sector. This result is consistent with general human capital investment on-the-job if the informal labor market is more competitive than the formal labor market due to frictions generated by labor regulations. (JEL O17, J24, J310)

Date: 2016
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