In this article we use a joint framework to investigate the effects on profit and size of Mexican microfirms from moving from the informal to the formal sector of the economy. Our analysis uses a multivariate Roy model, which allows us to study simultaneously the interaction between the...

Contributory pension system coverage has been low. High mobility between formal and the informal sector results in low contribution density which does not guarantee a minimum pension. The state has created cash transfer programs, which can disincentive formality. This paper proposes a...

This paper presents a cohort analysis of the participation in the labor force and in the formal and informal sectors of the economy. The participation rates are decomposed in age, cohort, and time effects. The life-cycle patterns in labor force participation and employment in the formal sector...