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The effects of labor conditions inheritance, wage differential incentives, and individual characteristics on the probability of being an informal worker in Mexico

Sylvia Beatriz Guillermo Peón & Liliana Estrada Quiroz

Problems of Development / Problemas del Desarrollo2025https://doi.org/10.22201/iiec.20078951e.2025.220.70253article
ABDC C
Weight
0.50

What the paper says

This research aims to estimate and analyze the influence of intergenerational transmission of informality, formal-informal wage differentials, and individual characteristics such as educational attainment, occupational category, sex, and age on the probability of being an informal worker. Using microdata from the National Survey of Occupation and Employment (ENOE) survey, we estimate a heteroskedastic Probit model with complex survey data. The estimation results show evidence that human capital and the intergenerational transmission of informality in labor conditions are the main factors affecting the probability of being an informal worker. Given the inefficiencies in labor regulation and social security provision, only when the wage-income difference is positive and large enough (benefits of formality outweigh the costs) does the change in the probability of being informal become negative.

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https://doi.org/https://doi.org/10.22201/iiec.20078951e.2025.220.70253

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@article{sylvia2025,
  title        = {{The effects of labor conditions inheritance, wage differential incentives, and individual characteristics on the probability of being an informal worker in Mexico}},
  author       = {Sylvia Beatriz Guillermo Peón & Liliana Estrada Quiroz},
  journal      = {Problems of Development / Problemas del Desarrollo},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.22201/iiec.20078951e.2025.220.70253},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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