Is formal employment sector hereditary? Determinants of formal/informal sector choice for Mexican male workers

Abstract

Understanding the relationship between parents’ and sons’ formal employment is essential for promoting social mobility in Mexico. Using the 2011 Survey of Social Mobility in Mexico (EMOVI), this paper contributes to the literature by addressing the intergenerational mobility of employment. Findings show a strong connection between intergenerational employment choices and suggest a positive selection for workers. Individuals with parents who worked in the formal sector are more likely to be enrolled in formal work and vice versa. Also, after controlling for parent’s employment sector, schooling remains as a significant vehicle to transit to the formal sector.

Keywords

• job
• occupational
• and intergenerational mobility
• occupational choice
• wage differentials
• informal labor markets