Labor informality, a regional analysis for Mexico

Abstract

This investigation examines labor informality from a regional context about a series of typical variables with the empirical literature on unemployment, using the panel data method. These characteristics include salary inequality, the average actual salary, unemployment, and the impact of the commercial opening of the state where they work. It was found that labor informality is associated with conditions of the high socioeconomic vulnerability of the worker. Therefore, it is suggested the reformulation of the economic policy that gives a central place to employment within the development strategy.