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D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. We analyze mobility in urban Mexico between three labor market states: working in the formal sector, working in the informal sector, and not working. We use a dynamic multinomial logit panel data model with random effects, explaining the labor market state of each individual during each time period. The data is drawn from Mexico 's Urban Employment Survey, a quarterly household survey for urban Mexico. Two separate five-wave panels are used: the first covering a period of rapid economic growth (1992 -1993), the second a period of recession after the Peso crisis (1994 -1995).Our main results are in line with the theory that formal sector jobs are superior to informal sector jobs and that working in the informal sector is a temporary state for those who cannot find a formal sector job and cannot afford not to work. Entry and exit rates for the formal sector are lower than for the informal sector. The probability of formal sector employment strongly increases with education level. For men, it is easier to enter the formal sector from the nonworking state than from the informal sector. The probability of working in the informal sector decreases with the level of income of other family members, while the probability of not...
This article investigates the labour supply responses of married women in Australia to their partners’ involuntary job loss. We study women’s labour market activities in the periods before and after their partners’ job loss. We find a significant added worker effect (AddWE) in terms of increased full‐time employment and working hours. The findings also suggest that it is harder for the female partners of men who have recently lost jobs to enter the labour market than it is for those already working to increase their working hours to compensate for lost income incurred by their partners’ job loss. The effect is persistent; one year after the partners’ job loss, women would still like to work more hours than they actually work. These findings suggest that marriage plays a risk‐sharing role through the AddWE in Australia.
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