Publication:
Can Temporary Wage Incentive Increase Formal Employment?: Experimental Evidence from Mexico

Simple item page
dc.contributor.authorAbel, Martin
dc.contributor.authorCarranza, Eliana
dc.contributor.authorGeronimo, Kimberly
dc.contributor.authorOrtega, Maria Elena
dc.date.accessioned2023-01-12T16:08:19Z
dc.date.available2023-01-12T16:08:19Z
dc.date.issued2022-11
dc.description.abstractFormal sector entry-level jobs in Mexico offer low starting salaries but substantial wage growth. This paper experimentally tests whether a six-months wage incentive can increase formal employment among secondary school graduates. Combining survey and high-frequency social security data, the paper shows that the incentive increases formal employment among vocational school graduates by 4.2 percentage points (14.5 percent) over the first two years driven by a 5 percentage point (25 percent) increase in permanent formal jobs. These employment gains are due to both extensive and intensive margin effects. Treatment effects are concentrated among youths with binding reservation wages who also tend to underestimate formal wage growth.en
dc.identifierhttp://documents.worldbank.org/curated/en/099638511172227750/IDU0f413d1c0085320451a0b09205fa6e11c0977
dc.identifier.doi10.1596/1813-9450-10234
dc.identifier.urihttps://hdl.handle.net/10986/38462
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;10234
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFORMAL EMPLOYMENT WAGES
dc.subjectINFORMALITY
dc.subjectWAGE GROWTH
dc.subjectYOUTH EMPLOYMENT
dc.subjectWAGE SUBSIDY
dc.subjectFORMAL EMPLOYMENT
dc.subjectRESERVATION WAGES
dc.titleCan Temporary Wage Incentive Increase Formal Employment?en
dc.title.subtitleExperimental Evidence from Mexicoen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCan Temporary Wage Incentives Increase Formal Employment? Experimental Evidence from Mexico
okr.date.disclosure2022-11-17
okr.date.doiregistration2025-04-10T11:13:13.259014Z
okr.date.lastmodified2022-11-17T00:00:00Zen
okr.doctypeWorking Papers
okr.doctypeWorking Papers::Policy Research Working Papers
okr.docurlhttp://documents.worldbank.org/curated/en/099638511172227750/IDU0f413d1c0085320451a0b09205fa6e11c0977
okr.guid099638511172227750
okr.identifier.doi10.1596/1813-9450-10234
okr.identifier.externaldocumentumIDU-f413d1c0-8532-451a-b092-5fa6e11c0977
okr.identifier.internaldocumentum33938999
okr.identifier.reportWPS10234
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099638511172227750/pdf/IDU0f413d1c0085320451a0b09205fa6e11c0977.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryMexico
okr.sectorWorkforce Development/Skills,Social Protection
okr.sectorEducation :: Vocational training
okr.topicGovernance::Youth and Governance
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Safety Nets and Transfers
okr.topicSocial Protections and Labor::Wages, Compensation & Benefits
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU0f413d1c0085320451a0b09205fa6e11c0977.pdf
Size:
2.37 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU0f413d1c0085320451a0b09205fa6e11c0977.txt
Size:
155.76 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers