Matching and City Size Wage Gaps under the Shadow of Informality: Evidence from Mexico

Larger labor markets provide workers and firms with better opportunities to find each other, enhancing positive assortative matching. We measure the extent of these agglomeration externalities in Mexico, where informal work represents a large share of employment and coexists with formal labor markets. Using a matched employer-employee dataset comprising the near universe of formal workers […]

Agglomeration and Skills: Explaining Regional Wage Disparities in Colombia

This article aims to analyze the differences in regional labor markets in Colombia based on new theories that integrate the analysis of occupational characteristics of the workforce, urban agglomeration, and specialization patterns. In this way, it contributes to the Colombian literature since i) it adapts the classification of occupations, an important input to understanding the […]