Arbeitspapier
Insurance against local productivity shocks
I slightly modify the model of Monte et al. (2015) to estimate how workers in Mexican municipalities choose the location of their workplace based on the income gains from commuting to another municipality. Estimates are in line with the intuition: Static estimates for both 2010 and 2015 suggest that those who commute earn an average 30 percent more than their non-commuting counterparts, and that commutes tend to be to municipalities located close to the place of residence. Comparing both years suggests that a reduction in local productivity both decreases the number of workers that come from other municipalities and increases the number of local residents that decide to work somewhere else, mitigating the negative effect of the reduction in local wages with higher earnings from the new work destinations. I find that some municipalities were not able to mitigate the negative productivity shocks on their income.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Papers ; No. 2016-19
- Classification
-
Wirtschaft
- Subject
-
Commuting
Economic Geography
Mexico
- Event
-
Geistige Schöpfung
- (who)
-
Pérez-Cervantes, Fernando
- Event
-
Veröffentlichung
- (who)
-
Banco de México
- (where)
-
Ciudad de México
- (when)
-
2016
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Pérez-Cervantes, Fernando
- Banco de México
Time of origin
- 2016
Other Objects (12)
Shared-appreciation mortgages and uninsurable idiosyncratic shocks
Tax collection, the informal sector, and productivity
Bank credit and productivity: Evidence from Mexican firms
Productivity, markups, and trade: Evidence from Mexican manufacturing industries
Price-setting in Mexico and the real effects of monetary shocks
Against all odds: Job search during the Great Recession
The impact of food price shocks on consumption and nutritional patterns of urban Mexican households
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Contracts, firm dynamics and aggregate productivity
Aggregate effects of a universal social insurance fiscal reform
Patterns of total factor productivity growth in Mexico: 1991-2011
Endogenous wage indexation and aggregate shocks
Shared-appreciation mortgages and uninsurable idiosyncratic shocks
Tax collection, the informal sector, and productivity
Bank credit and productivity: Evidence from Mexican firms
Productivity, markups, and trade: Evidence from Mexican manufacturing industries
Price-setting in Mexico and the real effects of monetary shocks
Against all odds: Job search during the Great Recession
The impact of food price shocks on consumption and nutritional patterns of urban Mexican households
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Contracts, firm dynamics and aggregate productivity
Aggregate effects of a universal social insurance fiscal reform
Patterns of total factor productivity growth in Mexico: 1991-2011
Endogenous wage indexation and aggregate shocks
Shared-appreciation mortgages and uninsurable idiosyncratic shocks
Tax collection, the informal sector, and productivity
Bank credit and productivity: Evidence from Mexican firms
Productivity, markups, and trade: Evidence from Mexican manufacturing industries
Price-setting in Mexico and the real effects of monetary shocks
Against all odds: Job search during the Great Recession
The impact of food price shocks on consumption and nutritional patterns of urban Mexican households
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Contracts, firm dynamics and aggregate productivity
Aggregate effects of a universal social insurance fiscal reform
Patterns of total factor productivity growth in Mexico: 1991-2011