The effects of macroeconomic shocks on employment: The case of Mexico

  • Raymundo M. Campos Vázquez El Colegio de México
Keywords: Mexico, employment, wages, shocks, informality
JEL Classification: J21, J22, J23, J48

Abstract

This paper studies the effects of macroeconomic shocks in employment and wages for the case of Mexico. I find that young and unskilled workers are the most affected by an economic shock in terms of unemployment, labor force participation and employment in the informal sector. I derive a theoretical model to study the effects of macroeconomic shocks on wages and employment composition. The theoretical findings imply that the elasticities of labor supply in the formal and informal sector are close to 0.75 and 0 respectively, and both labor demand elasticities are close to 1.

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Published
01-01-2010
How to Cite
Campos VázquezR. (2010). The effects of macroeconomic shocks on employment: The case of Mexico. Estudios Económicos, 25(1), 177-246. https://doi.org/10.24201/ee.v25i1.114
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