Using data from Mexico, the authors study empirically the link between trade policy and individual income risk and the extent to which this varies across workers of different human capital (education) levels. They use longitudinal income data on workers to estimate time-varying individual income...

This article offers an alternative to the traditional dualistic view of the relationship between formal and informal labor markets. It offers the first study of worker transitions between sectors using detailed panel data from Mexico and finds little evidence in favor of the dualistic view....