INTEGRATION OF YOUTH IN FORMAL LABOR MARKET IN MEXICO
Abstract
The objective of the present document is explain the probability that young people in Mexico have of entering the formal economy based on personal attributes and human capital in the presence of variables that capture regional diversity and the different sectors of economic activity. We analyze micro-data from the National Occupation and Employment Survey (ENOE) for the years 2005, 2010 and 2015. A probit with a sample selection is used to address the problem of self-selection bias. The results suggest that young men are more likely to be employed, and that the probability of doing so in the formal economy is determined by social characteristics such as social class and educational level. In addition, those who do not live with their parents are more likely to be employed. On the other hand, young people who live with more educated parents are less likely to be employed, although the probability for them to find a formal job is higher.
Key words: youth employment, informality, probit with a sample selection.
JEL Classification: J01, J13, J46.
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