Informality and Aggregate Productivity: The Case of Mexico PDF Download

Author: Jorge Alvarez
Publisher: International Monetary Fund
ISBN: 1513522329
Category : Business & Economics
Languages : en
Pages : 43

View

Book Description
We assess the aggregate productivity impact of distortions arising from labor regulations in Mexico and how they interact with informality. Using employment surveys and a firm-level economic census, we document a number of novel features about informal firms in Mexico. We then construct and estimate a model of heterogeneous firms and endogenous informality to study the micro and macro impacts from various policy reforms. Some reforms may have large impacts on informal employment but small impacts on aggregate productivity.

Author: Jorge Alvarez
Publisher: International Monetary Fund
ISBN: 1513519921
Category : Business & Economics
Languages : en
Pages : 43

View

Book Description
We assess the aggregate productivity impact of distortions arising from labor regulations in Mexico and how they interact with informality. Using employment surveys and a firm-level economic census, we document a number of novel features about informal firms in Mexico. We then construct and estimate a model of heterogeneous firms and endogenous informality to study the micro and macro impacts from various policy reforms. Some reforms may have large impacts on informal employment but small impacts on aggregate productivity.

Author: Santiago Levy Algazi
Publisher: Inter-American Development Bank
ISBN: 1597823058
Category : Business & Economics
Languages : en
Pages : 323

View

Book Description
Why has an economy that has done so many things right failed to grow fast? Under-Rewarded Efforts traces Mexico’s disappointing growth to flawed microeconomic policies that have suppressed productivity growth and nullified the expected benefits of the country’s reform efforts. Fast growth will not occur doing more of the same or focusing on issues that may be key bottlenecks to productivity growth elsewhere, but not in Mexico. It will only result from inclusive institutions that effectively protect workers against risks, redistribute towards those in need, and simultaneously align entrepreneurs’ and workers’ incentives to raise productivity.

Author: Ana Maria Oviedo
Publisher: World Bank Publications
ISBN: 0821379976
Category : Political Science
Languages : en
Pages : 54

View

Book Description
This survey assembles recent theoretical and empirical advances in the literature on economic informality and analyzes the causes and costs of informality in developed and developing economies. Using recent evidence, the survey discusses the nature and roots of informal economic activity across countries, distinguishing between informality as the result of exclusion and exit. The survey provides an extensive review of recent international experience with policies aimed at reducing informality, in particular, policies that facilitate the formalization process, create a framework for the transition from informality to formality, lend support to newly created firms, reduce or eliminate inconsistencies across regulation and government agencies, increase information flows, and increase enforcement.

Author: Guillermo Perry
Publisher: World Bank Publications
ISBN: 0821370936
Category : Business & Economics
Languages : en
Pages : 270

View

Book Description
Analyzes informality in Latin America, exploring root causes and reasons for and implications of its growth. This book uses two distinct but complementary lenses. It concludes that reducing informality levels and overcoming the "culture of informality" will require actions to increase aggregate productivity in the economy.

Author: Mr.Gabriel Quiros-Romero
Publisher: International Monetary Fund
ISBN: 1513568248
Category : Business & Economics
Languages : en
Pages : 38

View

Book Description
This paper proposes a framework for measuring the informal economy that is consistent with internationally agreed concepts and methodology for measuring GDP. Based on the proposed framework, the informal economy “comprises production of informal sector units, production of goods for own final use, production of domestic workers, and production generated by informal employment in formal enterprises.” This proposed framework will facilitate preparation of estimates of the informal economy as a component of GDP.

Author: International Monetary Fund. Western Hemisphere Dept.
Publisher: International Monetary Fund
ISBN: 1513519018
Category : Business & Economics
Languages : en
Pages : 91

View

Book Description
This 2019 Article IV Consultation with Mexico discusses that growth is expected to accelerate modestly in the near-term, reaching 0.4 percent in 2019, as macroeconomic policies become less contractionary. Monetary policy has started easing in the context of a widening negative output gap and declining inflation. The administration’s solid mandate presents an opportunity to address Mexico’s longstanding structural challenges while maintaining very strong policies and policy frameworks. Staff highlighted the need to specify credible measures to reach the announced fiscal targets while adopting a more growth-friendly and inclusive policy mix. Increasing non-oil tax revenues, paired with improving the efficiency of spending, will be an imperative in this regard. The authorities have initiated a package of reforms to strengthen financial deepening and inclusion.

Author: OECD
Publisher: OECD Publishing
ISBN: 9264093095
Category :
Languages : en
Pages : 170

View

Book Description
The 2011 edition of OECD's periodic economic survey of Mexico. This edition includes chapters on macroeconomic and structural policies, fiscal reform, structural reforms in regulatory, competition and education policies; and informality.

Author: Franziska Ohnsorge
Publisher: World Bank Publications
ISBN: 1464817545
Category : Business & Economics
Languages : en
Pages : 397

View

Book Description
A large percentage of workers and firms operate in the informal economy, outside the line of sight of governments in emerging market and developing economies. This may hold back the recovery in these economies from the deep recessions caused by the COVID-19 pandemic--unless governments adopt a broad set of policies to address the challenges of widespread informality. This study is the first comprehensive analysis of the extent of informality and its implications for a durable economic recovery and for long-term development. It finds that pervasive informality is associated with significantly weaker economic outcomes--including lower government resources to combat recessions, lower per capita incomes, greater poverty, less financial development, and weaker investment and productivity.

Author: Mr. Simon Black
Publisher: International Monetary Fund
ISBN: 1513599844
Category : Business & Economics
Languages : en
Pages : 53

View

Book Description
This paper discusses a comprehensive strategy for implementing Mexico’s climate mitigation commitments. Progressively increasing carbon prices from current levels of US$3 per ton to US$75 per ton by 2030 would achieve Mexico’s mitigation pledges, while raising annual revenues of 1.8 percent of GDP and cumulatively averting 11,600 deaths from local air pollution. The carbon price would raise fossil fuel and electricity prices, imposing burdens of 2.7 percent of consumption on the average Mexican household. However, recycling carbon pricing revenues would offset most of this burden, and targeted transfers could make the reform pro-poor and pro-equity. Additionally, the economic efficiency costs of carbon pricing (0.3 percent of GDP in 2030) are more than offset by local air pollution and other domestic environmental benefits (before even counting climate benefits). Mexico would need a more ambitious 2030 target if it were to follow many other countries in adopting a midcentury ‘net-zero’ emissions target. To enhance the effectiveness of the mitigation strategy, carbon pricing can be reinforced with sectoral instruments, such as feebates in the transport, power, industry, building, forestry, extractive, and agricultural sectors. Complementary policies are also needed to support public investment in the clean energy transition.