Abstract

LARA, Jaime et al. Rural-urban migration and informality in the metropolitan areas of Mexico. A short-term estimation. Estud. Econ. (México, D.F.) [online]. 2020, vol.35, n.2, pp.297-329.  Epub Oct 21, 2020. ISSN 0186-7202.  https://doi.org/10.24201/ee.v35i2.405.

We estimate the impact of rural-urban migration from the period 2010-2015 on informality in metropolitan areas of Mexico. The estimation of ordinary least squares does not establish any effect, while the estimation with instrumental variables finds that exogenous rural urban migration increases informality. Other variables such as unemployment, labour participation and inequality are unaffected, indicating that informal sector allows to absorb changes in labour supply in the short term, albeit with possible negative effects on labour income of substitute workers.

Keywords : segmented labour markets; unemployment; labour force participation; J46; J6; O15.

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