scholarly journals Gross Worker Flows in the Presence of Informal Labor Markets: Evidence from Mexico, 1987-2002

2007 ◽  
Author(s):  
Mariano Bosch Mossi ◽  
William F. Maloney
Keyword(s):  
Labor Markets ◽  
Informal Labor ◽  
Worker Flows ◽  
Informal Labor Markets

scholarly journals Immigration, Wages and Employment under Informal Labor Markets

2021 ◽  
Author(s):  
Lukas Delgado-Prieto
Keyword(s):  
Labor Markets ◽  
Formal Sector ◽  
Informal Workers ◽  
Informal Labor ◽  
Wage Effect ◽  
Wage Effects ◽  
Market Impacts ◽  
Negative Effect ◽  
Informal Labor Markets ◽  
High Degree

This paper studies the labor market impacts of a massive inflow of Venezuelans in Colombia. By comparing areas that received different shares of migrants, I find a negative effect on wages and on local employment for natives. The negative wage effect is driven by a large drop of wages in the informal sector, where migrants are mostly employed, while the negative employment effect is driven by a reduction of employment in the formal sector, where the minimum wage is binding. To explain these results, I develop a model in which firms hire formal and informal workers with different costs. If these workers have a high degree of substitutability, and wages for formal workers are rigid, firms reallocate formal to informal employment as a response to lower informal wages. In settings with informal labor markets migration can therefore lead to asymmetric employment and wage effects across the informal and formal sectors.

scholarly journals What drives the spatial wage premium in formal and informal labor markets? The case of Ecuador

2020 ◽  
Vol 60 (4) ◽  
pp. 823-847 ◽  
Author(s):  
Alessia Matano ◽  
Moisés Obaco ◽  
Vicente Royuela
Keyword(s):  
Labor Markets ◽  
Wage Premium ◽  
Informal Labor ◽  
Informal Labor Markets
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