Impact of informal employment on the returns of higher education due to Covid-19 in Mexico
DOI:
https://doi.org/10.24275/uam/azc/dcsh/ae/2023v38n98/AguirreKeywords:
returns to education, higher education, labor income, statistical methodsAbstract
This research assesses the impact of informal employment on the wage earning rate (marginal return) of individuals who have Higher Education (HE) in Mexico in the framework of the health contingency due to COVID-19 in 2020, which forced to the closure of a significant number of formal economic activities. HE returns estimation is carried out using the procedure suggested by Heckman et al., (2001) and extended by Mogstad et al., (2020) incorporating multiple instrumental variables and by Pinamang-Acheampong et al., (2022) treating unobserved heterogeneity using an endogenous switching regression model. The information employed for the estimates uses a sample from the National Household Income and Expenditure Survey (ENIGH, Spanish acronym for Encuesta Nacional de Ingresos y Gastos de los Hogares) 2020. Empirical evidence is found that the informal labor market had a drastic negative impact on the wages of individuals with ES.
JEL Classification: I26; I23; N30; C10.
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