Informality and Aggregate Productivity: The Case of Mexico

Author/Editor:

Jorge Alvarez ; Cian Ruane

Publication Date:

November 27, 2019

Electronic Access:

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Summary:

We assess the aggregate productivity impact of distortions arising from labor regulations in Mexico and how they interact with informality. Using employment surveys and a firm-level economic census, we document a number of novel features about informal firms in Mexico. We then construct and estimate a model of heterogeneous firms and endogenous informality to study the micro and macro impacts from various policy reforms. Some reforms may have large impacts on informal employment but small impacts on aggregate productivity.

Series:

Working Paper No. 19/257

English

Publication Date:

November 27, 2019

ISBN/ISSN:

9781513519920/1018-5941

Stock No:

WPIEA2019257

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

43

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