Seminario de Economía Regional y Políticas Públicas - Spatial Misallocation, Informality and Transit Improvements: Evidence from Mexico City

 

El jueves 18 de agosto a la 1:30 p.m. tendremos nuestro séptimo Seminario de Economía Regional, Urbana y de Políticas Públicas del 2022 con la presentación del documento "Spatial Misallocation, Informality and Transit Improvements: Evidence from Mexico City" a cargo de Roman David Zárate, Economista del Banco mundial.

 

 

Abstract: This paper proposes a new mechanism to explain resource misallocation in developing countries: the high commuting costs within cities that prevent workers from accessing formal employment. To test this mechanism, the paper combines a rich collection of microdata and exploits the opening of new subway lines in Mexico City. The findings show that transit improvements reduce informality by 7 percent in areas near the new stations. The paper develops a spatial model that accounts for the direct effects of infrastructure in perfectly economies and allocative efficiency. Changes in allocative efficiency driven by workers’ reallocation to the formal sector amplify the gains by 20–25 percent.

 

 

Jueves
Ago
18
2022
Expositor/es:
Roman David Zárate, Economista del Banco mundial
Seminario virtual, organizado por Cartagena
Fecha y hora:
Jueves, 18 de Agosto 2022 - 1:30 pm
Modalidad:
Virtual