Comparative analysis of labor market dynamics using Markov processes: An application to informality

B-Tier
Journal: Labour Economics
Year: 2010
Volume: 17
Issue: 4
Pages: 621-631

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper discusses a set of statistics for examining labor market dynamics in developing countries and offers a simple search model that informs their interpretation. It then employs panel data from Argentina, Brazil and Mexico to generate a set of preliminary stylized facts about patterns of sectoral transition and duration. Finally, it nests two competing views of the informal sector within the model and uses variation in the statistics across age and the business cycle to help discriminate between them. The results suggest that a substantial part of the informal sector, particularly the self-employed, corresponds to voluntary entry, although informal salaried work may correspond more closely to the standard queuing view, especially for younger workers.

Technical Details

RePEc Handle
repec:eee:labeco:v:17:y:2010:i:4:p:621-631
Journal Field
Labor
Author Count
2
Added to Database
2026-01-24