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Transición y persistencia en el ciclo formal-informal en México: El papel del capital humano

Author

Listed:
  • Jaime J. Escobedo González

    (Facultad de Economía, Universidad Autónoma de Nuevo León)

  • Jorge O. Moreno Treviño

    (Facultad de Economía, Universidad Autónoma de Nuevo León)

Abstract

This paper analyzes the role of human capital in the formal-informal transition of workers in Mexico. We create a dynamic pooled aligned panel of 44 quarters, using a series of quarterly panel data that follows each individual for 5 consecutive quarters, using the Mexican Employment Survey. Using this synthetic dataset we estimate a dynamic multinomial logit model and classify potential working force people in four labor states: formal, informal, unemployed, and outside the labor market. Our results show that: 1) persistence is greater in informality vs. formality, and 2) worker’s human capital plays an important role in formal-informal transitions. In particular, worker’s education not only increases the probability of being formal but also increases the probability of entering and/or remaining into formality.

Suggested Citation

  • Jaime J. Escobedo González & Jorge O. Moreno Treviño, 2020. "Transición y persistencia en el ciclo formal-informal en México: El papel del capital humano," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 17, pages 1-45.
    • Handle: RePEc:rel:journl:y:2020:v:17:n:1:p:1-45
    Note: Vol. 17, Núm. 1 (2020)
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    Citations

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    Cited by:

    1. Cuellar, Cecilia Y. & Moreno, Jorge O., 2022. "Employment, wages, and the gender gap in Mexico: Evidence of three decades of the urban labor market," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 3(2).
    2. Sergei SOARES & Janine BERG, 2022. "The labour market fallout of COVID‐19: Who endures, who doesn't and what are the implications for inequality," International Labour Review, International Labour Organization, vol. 161(1), pages 5-28, March.
    3. Benjamín Villena-Roldán, 2024. "Unpacking the Persistence of Informality," Journal of Labor Research, Springer, vol. 45(2), pages 203-231, June.
    4. Jorge O. Moreno & Cecilia Y. Cuellar, 2021. "Informality, Gender Employment Gap, and COVID-19 in Mexico: Identifying Persistence and Dynamic Structural Effects," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(3), pages 1-25, Julio - S.

    More about this item

    Keywords

    Human capital; labor informality; labor transitions; persistence;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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