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This paper develops a static general equilibrium model of occupational choice with heterogeneity in both labor and entrepreneurial skills that generates high levels of employment informality. The model uses a detailed structure of personal income taxes (PITs) and subsidies to formal workers to capture the labor wedges present in many countries. These features enable the model to assess how changes in PITs and subsidies affect labor market outcomes and the government's fiscal accounts. The model is calibrated for Mexico, which, like many developing countries, has high levels of labor informality. The model's simulations shed light on the impact of a series of reforms to PITs and subsidy schemes aimed at increasing labor formality among low-income workers. The results suggest that adjusting the current structure of the formal employment subsidy combined with PIT exemptions for low-income workers could reduce informality while marginally improving the government's fiscal balance. [ABSTRACT FROM AUTHOR]

Informality often concerns policymakers due to its negative implications on productivity and poverty. In recent years, the extent of informal employment has diverged across Mexican states. Varying informal employment dynamics within a comparable institutional environment offers scope to identify policies that can reduce informality. This paper uses cross-state panel and individual data to examine the determinants of informal employment, exploiting the diverging outcomes across states, industries and time. The results suggest that there is no 'silver bullet' to combat informality, yet a package of policies promoting labour skills, encouraging foreign investment, enhancing tax enforcement and deterring corruption can reduce informal employment. Intriguingly, reducing the cost to start a business is found to have a non-linear effect on informal employment, conditional on the prevalence of microenterprises. [ABSTRACT FROM AUTHOR]

This paper develops a static general equilibrium model of occupational choice with heterogeneity in both labor and entrepreneurial skills that generates high levels of employment informality. The model uses a detailed structure of personal income taxes (PITs) and subsidies to formal workers to capture the labor wedges present in many countries. These features enable the model to assess how changes in PITs and subsidies affect labor market outcomes and the government's fiscal accounts. The model is calibrated for Mexico, which, like many developing countries, has high levels of labor informality. The model's simulations shed light on the impact of a series of reforms to PITs and subsidy schemes aimed at increasing labor formality among low-income workers. The results suggest that adjusting the current structure of the formal employment subsidy combined with PIT exemptions for low-income workers could reduce informality while marginally improving the government's fiscal balance. [ABSTRACT FROM AUTHOR]

Background: Rates of exclusive breastfeeding fall below recommended levels, particularly among women in paid employment. In Mexico, more than half of women are in informal employment, meaning they lack many of the protections that may support breastfeeding. Methods: In-depth interviews with 15 key informants representing government agencies (n = 6 organizations), NGOs (n = 4), international organizations (n = 2), and academia (n = 2) in Mexico. Interviews were conducted between March and June 2023. To understand and describe barriers to breastfeeding among informally employed women in Mexico according to key informants and the current and potential policies to address these barriers, we conducted a qualitative thematic analysis. Results: Current policies to promote, protect, and support breastfeeding predominantly apply to all employed women, but respondents expressed concern that they did not provide adequate protection for women in informal employment. Additional themes concerned the need for relevant programs to be institutionalized and coordinated, discussions of breastfeeding as a right, and the legal equivalence (whether true in practice or not) of formal and informal workers. Conclusions: Women employed in Mexico's informal sector face a dearth of maternity protections. According to key informants, few policies exist to promote, protect, and support breastfeeding among employed women, in general, but the economic vulnerability and challenging working conditions of women in informal employment exacerbates their situation. The lack of access to formal labor protections, such as paid maternity leave, creates a significant barrier to breastfeeding for women in the informal sector. Recommendations include short-term policies to fill gaps in social protection for informally employed women, as well as longer-term solutions such as the development of universal social protection programs and supporting formalization. [ABSTRACT FROM AUTHOR]

This paper analyzes the characteristics of migration process in Baja California Sur, on the Pacific Ocean coast of northwest Mexico, where immigration has impacted the local economy through the development of tourism and intensive agriculture that target foreign markets. This has encouraged an annual rate of population growth of 10% during the last decade, feeding into employment in both formal and informal sectors. Referring to the cases of women who develop beach vending activities and agricultural workers, this paper seeks to contribute to the understanding of how migration and the informal labor market intertwine [ABSTRACT FROM AUTHOR]

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