Informal and Formal Labour Flexibility in Mexico

Alcaraz, Carlo

doi:10.13043/dys.63.3

Cited by 6 publications

(9 citation statements)

References 8 publications

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“…During recessions, for example, wage flexibility in the informal sector allows the market to absorb individuals who do not find formal employment: workers who would otherwise be unemployed. This dynamic would imply that the informality rate is countercyclical-a stylized fact amply documented in the literature (see, for example, Chiquiar and Ramos Francia 1999, Alcaraz 2009, Gasparini and Tornarolli 2009, Fiess, Fugazza, and Maloney 2010, Perry et al 2007, and Peterson 2014). 2 Figure 1 shows the evolution of the informality rate and the output gap in Mexico, which indeed suggests that the informality rate in the Mexican economy follows a countercyclical trajectory.…”

Section: Informal Employment and Labor Market Slackmentioning

confidence: 95%

Efectos de Choques No Anticipados en el Ingreso sobre el Consumo en México, 2000-2016

Llamosas-Rosas¹,

González²

2021

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The non-accelerating inflation rate of unemployment (NAIRU) is not directly observable and the presence of informal workers imposes an additional challenge in its estimation. Countries with large informal sectors, traditional measures might not depict labor slack properly, as it has the wage flexibility needed to incorporate formal workers that cannot find a formal job. In this paper, we present an estimation of the traditional NAIRU for Mexico and an alternative measure that includes informality as an indicator of labor underutilization. We find that both measures of NAIRU and the associated labor market slack indicators follow similar patterns over time. However, the slack estimated with the indicator that includes informality seems to predict inflationary pressures more accurately when the unemployment gap is close to zero.

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Section: Informal Employment and Labor Market Slackmentioning

confidence: 95%

Efectos de Choques No Anticipados en el Ingreso sobre el Consumo en México, 2000-2016

Llamosas-Rosas¹,

González²

2021

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“…Estos elementos explican por qué las fluctuaciones del producto se correlacionan más con las fluctuaciones del salario real que con los cambios en el empleo. También pueden explicar la conclusión a que llega Alcaraz de que los salarios reales no dependen del desempleo en el sector formal (Alcaraz, 2009) Por otra parte, se argumenta que si bien el mercado laboral de México se encuentra marcadamente regulado por leyes laborales, en la práctica, el cumplimiento de dichas leyes es muy pobre. Asimismo, una serie de esquemas adoptados desde fines de los años ochenta han incrementado la flexibilidad laboral (Marshall, 2004).…”

Section: Las Políticas Monetarias Y Fiscales En Méxicounclassified

“…17 Calderon-Madrid (2000); Alcaraz, Chiquiar y Ramos-Francia (2008) y Alcaraz (2009) presentan alguna evidencia del alto grado de movilidad laboral entre los mercados formal e informal. La existencia de un amplio mercado de trabajo informal estrechamente entrelazado con el formal significa que las fluctuaciones en el producto no necesariamente se traducen en fluctuaciones del desempleo, o viceversa.…”

Section: México?unclassified

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México: ¿Cómo inciden las políticas monetarias en las tasas de desempleo?

Islas

Cortez

2012

Revista De La CEPAL

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En este artículo se analiza el impacto de un choque (shock) de política monetaria en las tasas de desempleo de México. A diferencia de estudios anteriores, en este se volvieron a calcular las tasas de desempleo para compararlas con las de los países de la Organización de Cooperación y Desarrollo Económicos (OCDE). La conclusión es que, ante una política monetaria restrictiva, el desempleo aumenta siguiendo el mismo patrón en forma de U invertida que se observa en otros estudios. Los resultados son robustos con respecto a diferentes supuestos sobre la naturaleza del mercado laboral mexicano.

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“…This definition includes both wage earners that do not have access to social security and self employed workers that do not follow a formal accounting system. Some evidence associated with segmentation between the formal and informal sectors exists, such as the presence of a restrictive labor legislation (Heckman and Pagés, 2004;Botero et al, 2004) and countercyclical informal employment (Alcaraz, 2009;Gasparini and Tornaroli, 2009;Fiess et al, 2010). Some authors have argued that there is also evidence consistent with voluntary informal employment, such as high mobility between formal and informal employment (e.g.…”

Section: Introductionmentioning

confidence: 99%

Informality and Segmentation in the Mexican Labor Market

Alcaraz¹,

Chiquiar²,

Salcedo³

2015

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In developing countries, some workers have formal jobs while others are occupied in informal positions. One view regarding this duality suggests that sectors are segmented, which means that a worker in the informal sector identical to another in the formal sector cannot get a formal position due to entry barriers. A second view states that workers self-select into informal jobs. Previous research suggests that these two situations may coexist in the same labor market. In this paper we identify the proportion of informal workers who are in each situation for the case of Mexico. Using a simple model of self-selection with entry barriers into the formal sector, we estimate that between 10 and 20 percent of informal workers would prefer to have a formal job. While this result provides evidence of the presence of some segmentation in the Mexican labor market, it suggests that an important proportion of workers in the informal sector self-select into it.

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Informal and Formal Labour Flexibility in Mexico

Cited by 6 publications

References 8 publications

Efectos de Choques No Anticipados en el Ingreso sobre el Consumo en México, 2000-2016

Efectos de Choques No Anticipados en el Ingreso sobre el Consumo en México, 2000-2016

México: ¿Cómo inciden las políticas monetarias en las tasas de desempleo?

Informality and Segmentation in the Mexican Labor Market

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