This article shows that the Mincer equations, augmented with variables of firm size and corrected by selectivity bias, yield results that are consistent with the theories of human capital and labor segmentation. Greater firm endowments of human capital and physical capital are related to greater...

This article aims to analyze the effect of minimum wage levels on the decision to join the informal job sector. We estimated a pseudo panel model of engagement in the informal sector using an IV-probit. Our results show that an increased wage gap — the relative difference between observed and...