"The Effects of Macroeconomic Shocks on Employment: The Case of Mexico"
Raymundo M. Campos-Vázquez

This paper studies the empirical and theoretical effects of macroeconomic shocks in employment and wages for the case of Mexico. Using an event study of the 1995, 2001 and 2008 crises, I …find that young and unskilled workers are the most affected by an economic shock: they are the most sensitive to unemployment, changing  from employment in the formal to the informal sector (formal workers are entitled to social security protection), and to leave the labor force.

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