The formal Mexican labor market has shown important changes in the last five years: the employment in the industry has been decreasing whereas the employment in the service sector has been increasing. This study looks at the consequence of such changes on the aggregate productivity of the formal...

This paper estimates private returns to education in Mexico by means of the Mincer model. The natural ability bias that the literature reports in this type of estimations is tried to be solved using the control function method. Through this method some variables relevant to wage determination...

We estimate wage differentials across different sectors of the Mexican economy. The results suggest that the wage differential between the formal and informal sectors is significant and larger than the differential between industry and services. The findings suggest that significant differences...