Gong, Xiaodong; van Soest, Arthur - Institute for the Study of Labor (IZA) - 2001
We analyze wage differentials mobility between the formal and informal sector in urban Mexico, using panel data on five … quarters drawn from Mexico’s Urban Employment Survey. We develop a dynamic random effects panel data model. It consists of two … driven by wage differentials and unobserved heterogeneity, while true state dependence is much less important. For women …