Neighborhood effects and job informality: the case of Metropolitan Area of Mexico City

Type Working Paper
Title Neighborhood effects and job informality: the case of Metropolitan Area of Mexico City
Author(s)
Publication (Day/Month/Year) 2014
URL http://pagines.uab.cat/appliedeconomics/sites/pagines.uab.cat.appliedeconomics/files/Koike,​S._paper.pdf
Abstract
Residential segregation may affect the access to labor market opportunities as well as the quality of job
for individuals living in poor neighborhoods. We find that in the Metropolitan Area of Mexico City, residential
segregation has negative effects on labor force participation in the case of married women. Living in deprived
neighborhood decreases the probability of being a formal worker for men. Formal and informal job accessibility
only affects less educated workers. Social interaction effects and strong ties of social networks have different
effects on job formality depending on the composition of the members of neighborhood or household in terms
of their labor status, namely formal or informal. If the majority of members are formal workers, the probability
of being a formal worker increases, but if majority members are informal employers this probability decreases.

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