Abstract
We use the Mexican labor market structure to price the set of fringe benefits that household heads receive when formally employed. We exploit longitudinal, nationally-representative information on household heads who are formal, informal, or switch status at least once in our data. Using monthly labor income and an efficient markets hypothesis, we identify a standard linear model which accounts for time-variant household heads’ characteristics and household level and time fixed effects. Under the usual strict-exogeneity assumption, we find that the price of fringe benefits is approximately 7.9% of the average monthly labor income of informal workers, or $217 USD. JEL Classification:D4; J3; J4
| Original language | English (US) |
|---|---|
| Article number | 1 |
| Journal | IZA Journal of Labor Economics |
| Volume | 4 |
| Issue number | 1 |
| DOIs | |
| State | Published - Dec 1 2015 |
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All Science Journal Classification (ASJC) codes
- Industrial relations
- Economics and Econometrics
- Organizational Behavior and Human Resource Management
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The price of fringe benefits when formal and informal labor markets coexist. / Argente, David; García, Jorge Luis.
In: IZA Journal of Labor Economics, Vol. 4, No. 1, 1, 01.12.2015.Research output: Contribution to journal › Article
TY - JOUR
T1 - The price of fringe benefits when formal and informal labor markets coexist
AU - Argente, David
AU - García, Jorge Luis
PY - 2015/12/1
Y1 - 2015/12/1
N2 - We use the Mexican labor market structure to price the set of fringe benefits that household heads receive when formally employed. We exploit longitudinal, nationally-representative information on household heads who are formal, informal, or switch status at least once in our data. Using monthly labor income and an efficient markets hypothesis, we identify a standard linear model which accounts for time-variant household heads’ characteristics and household level and time fixed effects. Under the usual strict-exogeneity assumption, we find that the price of fringe benefits is approximately 7.9% of the average monthly labor income of informal workers, or $217 USD. JEL Classification:D4; J3; J4
AB - We use the Mexican labor market structure to price the set of fringe benefits that household heads receive when formally employed. We exploit longitudinal, nationally-representative information on household heads who are formal, informal, or switch status at least once in our data. Using monthly labor income and an efficient markets hypothesis, we identify a standard linear model which accounts for time-variant household heads’ characteristics and household level and time fixed effects. Under the usual strict-exogeneity assumption, we find that the price of fringe benefits is approximately 7.9% of the average monthly labor income of informal workers, or $217 USD. JEL Classification:D4; J3; J4
UR - http://www.scopus.com/inward/record.url?scp=84983239046&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84983239046&partnerID=8YFLogxK
U2 - 10.1186/s40172-014-0014-0
DO - 10.1186/s40172-014-0014-0
M3 - Article
AN - SCOPUS:84983239046
VL - 4
JO - IZA Journal of Labor Economics
JF - IZA Journal of Labor Economics
SN - 2193-8997
IS - 1
M1 - 1
ER -