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Wage differentials and mobility in the urban labour market: a panel data analysis for Mexico

Gong, Xiaodong; van Soest, Arthur


We analyze wage differentials and transitions between the formal and informal sectors in urban Mexico. We use panel data on five quarterly waves from Mexico's Urban Employment Survey. We develop a dynamic random effects panel data model consisting of separate wage equations for the two sectors and a logit part explaining the labour market state with wages included as explanatory variables. The model is estimated using simulated maximum likelihood. The estimates show that wage differentials...[Show more]

CollectionsANU Research Publications
Date published: 2002
Type: Journal article
Source: Labour Economics
DOI: 10.1016/S0927-5371(02)00045-3


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