Analysis of Changes in the Formal-Informal Urban Sectors for Males

Abstract

This research presents empirical evidence on the urban labor market earnings for males in Mexico by formal-informal sectors during 1992 and 2004. The analysis is based on non-parametric density function techniques developed by Jenkins and Van Kerm (2004). The empirical work allows one to visualize the complete earnings distribution according to the occupational subgroups’ decomposition and changes. The article concludes that informal self-employment is better paid than other sets of formal-informal occupations, since it has benefitted from changes within earnings distribution.