Three essays on the Mexican labour market

Iriarte Rivas, Cesar Gustavo (2018) Three essays on the Mexican labour market. Doctoral thesis (PhD), University of Sussex.

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Abstract

The present thesis aims to contribute to the understanding of labour economics in Mexico. In particular, the decisions of individuals to enter a job in the formal or informal sector and how workers differ in terms of wage and time spent unemployed. Also analysing the effect of high levels of violence on wages.
In the first chapter, search channels are analysed. The results reveal that women benefit more in securing formal jobs when searching on-line, newspaper and via allocation offices. Men benefit from friends and family to secure informal jobs. Searching online for jobs implies a wage premium of 12.3% for formal workers and 7.0% for informal ones. Searching for jobs in the newspaper, implies a wage penalty of 5.24%. These results are robust after the correction for the potential issue of selection bias.
In the second chapter, the duration of unemployment is analysed. Both the single and multiple destination models permit us to conclude that going directly to the workplace and searching for jobs via newspaper reduce the time unemployed for those exiting into a formal job. Asking friends and relatives increases the hazard for those securing an informal job. These results are robust to the inclusion of unobserved heterogeneity in the estimation.
The third chapter offers an explanation of the impact that the presence of Drug Trafficking Organizations in Mexican municipalities on the wages of individuals. It also offers an explanation of the impact for both formal and informal workers. The estimation results of the preferred specification after instrumenting violence and the presence of DTOs to address reverse causality, yields a positive effect of the presence of DTOs, but no effect of violence. More specifically, an additional DTO per municipality increases wages by 5.7%. The impact on wages is not statistically different for formal and informal workers.

Item Type: Thesis (Doctoral)
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HD Industries. Land use. Labour > HD4801 Labour. Work. Working class > HD8045 By region or country > HD8101 Other regions or countries > HD8110.5 Latin America > HD8111 Mexico
Depositing User: Library Cataloguing
Date Deposited: 17 Apr 2018 14:04
Last Modified: 17 Apr 2018 14:04
URI: http://sro.sussex.ac.uk/id/eprint/75173

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