This paper analyzes the contribution of the minimum wage to the well documented rise in earnings inequality in Mexico … between the late 1980s and the early 2000s. We find that a substantial part of the growth in inequality, and essentially all … the growth in inequality in the bottom end, is due to the steep decline in the real value of the minimum wage. …

Two stylized representations are often found in the academic and policy literature on informality and formality in …

A stylized prediction of the development economics discourse is that informality will disappear with development. And … yet in the last twenty years conventional measures of informality, far from declining, have either remained stagnant or … have actually increased. What exactly is informality and what are its magnitudes and trends? What are the causes of …

theoretical model in which it is positively related to income inequality, more so under weak institutions, and is negatively … informal sector, income inequality, and institutional quality. The results are shown to be robust with respect to a variety of …

This Paper presents theory and evidence on the relationship between inequality and institutional quality. We exhibit a …

investigation. We then compare two independent sources of individual-level wage information from Mexico -- firms' wage reports to …

to education, and changes in industry premiums and informality alone cannot fully explain the increase in wage inequality … informality, though this effect is concentrated in the years prior to the labour market reform. Nevertheless, increasing returns …