2018
DOI: 10.18235/0001189
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Under-Rewarded Efforts: The Elusive Quest for Prosperity in Mexico

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Cited by 68 publications
(78 citation statements)
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“…One view is that distortions are preventing the transfer of these workers and associated capital to more productive, larger firms. Levy (2018), for instance, argues that in Mexico, the fact that large firms need to pay health insurance, taxes, and the like offers an implicit subsidy to microenterprises and leads to an excessive investment in lowproductivity projects. Relatedly, very high minimum wages may prevent workers from transiting to more productive sectors.…”
Section: How Do Microenterprises and Informal Firms Unplugged From Thmentioning
confidence: 99%
“…One view is that distortions are preventing the transfer of these workers and associated capital to more productive, larger firms. Levy (2018), for instance, argues that in Mexico, the fact that large firms need to pay health insurance, taxes, and the like offers an implicit subsidy to microenterprises and leads to an excessive investment in lowproductivity projects. Relatedly, very high minimum wages may prevent workers from transiting to more productive sectors.…”
Section: How Do Microenterprises and Informal Firms Unplugged From Thmentioning
confidence: 99%
“…As noted earlier, even the World Bank and the IMF have seemed to come around to the idea of 19. See this view, for example, in Levy (2008Levy ( , 2018 and tentatively in Barrientos (2019). universalism. However, as argued by Fischer (2012Fischer ( , 2018 and Martinez Franzoni and Sanchez-Ancochea (2016), of crucial importance is the extent to which the idea of universalistic social policy has been watered down to its most minimalist connotation (as is common in UN and ILO positions) or appropriated by agendas that are not, in reality, particularly universalistic (as with the World Bank positioning).…”
Section: Conclusion: Ominous Potential Futures Of Social Policymentioning
confidence: 99%
“…This section explores the relationship between the level of informality and labor market institutions. Specifically, we estimate a series of cross-country regressions of the level of informality measured as the ratio of informal employment over total non-agricultural employment 18 on several indicators capturing different aspects of labor market institutions including: hiring and firing practices; flexibility of wage determination; redundancy costs (in weeks of salary); the ratio of the minimum wage to value added per worker; a dummy variable that takes the value 1 if a thirdparty approval is required to dismiss one worker and zero otherwise; and a dummy variable 17 See for example Levy (2018). 18 As before, the measure of informality is based on the latest available year for a given country of the indicator presented in ILO (2018).…”
Section: Links Between Informality and Labor Market Institutionsmentioning
confidence: 99%