Essay in labor economics: children immigration, informal employment, and social mobility in Mexico

García Andrés, Adelaido (2016) Essay in labor economics: children immigration, informal employment, and social mobility in Mexico. Doctorado thesis, Universidad Autónoma de Nuevo León.

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Resumen

My thesis dissertation consists of three empirical essays on labor economics: Chapter 1. “How does affect household immigration child labor?” focus in a little explored area in Mexico, the effect of household immigration on child labor. Using the 2013 MTI-ENOE, I set up a bivariate probit model to control two mixed effects, the inverse relation between child labor and education, and the endogeneity in the family migration. I find that the probability of child labor to immigrant child is higher compared to a non migrant child, this probability increases with his age and it is larger for boy relative to girls. In relation to household composition, the rates of child labor is higher in household with a father absent. In fact, immigrant children are a vulnerable group, even if they seem to have a higher level of education than non-migrant. Chapter 2. “Intergenerational transmission of informal employment in Mexico. A limited choice or better income prospects?” motivates the use of retrospective data 2011 ESRU Survey of Social Mobility in Mexico. I develop a formal/informal employment occupation model to estimate the likelihood for sons to continue the same father’s employment occupation sector. Different from the previous evidence in Mexico, my study differs in three ways: (1) empirical strategy aims at controlling as much as possible for heterogeneity sample, (2) microeconometric framework derives from a structural model with expected wages explicitly determining labor occupation decisions, (3) selectivity bias is achieved using a two-steep estimation. My results show a strong connection between intergenerational occupation, also predicted earnings differentials between occupation sectors. Hence, individuals with informal parent’s occupation have less likelihood to be enrolled in the formal sector. Chapter 3. “Leaving the nest or living with her parents: Evidence from Mexican millennia’s generation” adds to the literature by examining the determinants of children’s propensity to live with their parents. The 2010 Mexican Census enumerated that 67 percent young adults aged 20 to 29 years still living with their parents, 29 percent living with a partner and about 4 percent living alone. Why young adults co-residence with her parents beyond mature age has several issue. i.e., living with parent’s serves as an important mechanism through with parents transfer resources to their adult’s sons. I focus on Millennia’s Generation (1980–1999) in order to consider some relevant characteristics’ in this generation. I found that labor participation reduce the propensity to co residence only for males, this is explained in part by lower labor participation for female sample, however, this results should be considered with caution due to endogeneity between labor participation and co residence. Similar to other papers, I found that children living in household where both parents are working may experience low unemployment rates, which is associated with independence of children at younger age.

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