Job Quality and Labour Market Transitions: Evidence from Mexican Informal and Formal Workers

We document job characteristics for young, male, urban workers in Mexico, a country with high informal employment and increasing education levels. The sector is composed of two distinct parts: salaried self-employment. On almost every measure, including wages, jobs are lower quality than formal or self-employed ones. characterize short-term type transitions among these show that plays key role when transitioning into the sector, whereas age more strongly associated Persistence likely educated workers. These also benefit from higher wage gains this transition jobs. average, wages self-employment, but less-educated more. For workers, self-employment can represent an outlet entrepreneurial talent some, like work, others, it be last resort.