/methodology/approach – The paper relies on a mid-size survey from Mexico as well as on a group of subjective well-being indicators to explore … associated with a better life nor with a worse life. Neither the exclusion nor the exit view of informality is supported by the …-related well-being of its citizens. There may well be legitimate policy reasons why the degree of informality should be reduced …

/methodology/approach – The paper relies on a mid-size survey from Mexico as well as on a group of subjective well-being indicators to explore … associated with a better life nor with a worse life. Neither the exclusion nor the exit view of informality is supported by the …-related well-being of its citizens. There may well be legitimate policy reasons why the degree of informality should be reduced …

determinedthatinformal employment has a growing trend in the last quarters of the studied period. Ahigher level of informality is associated …

This paper documents how informal employment in Mexico is countercyclical, lags the cycle and is negatively correlated … to formal employment. This contributes to explaining why total employment in Mexico displays low cyclicality and … formal and informal labor markets, and the model is calibrated to Mexico. The model performs well in terms of matching …