Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy
In Mexico, approximately 55% of the working population is employed informally, contributing 24.4% to the Gross Domestic Product (GDP) in 2022. This study analyzed the impact of wages, taxes, government spending, and unemployment on the informal economy of Mexico from 1980 to 2022, as well as its rel...
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MDPI AG
2024-11-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/12/11/301 |
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| author | David Robles Ortiz Raymundo Alexei Ambriz Torres |
| author_facet | David Robles Ortiz Raymundo Alexei Ambriz Torres |
| author_sort | David Robles Ortiz |
| collection | DOAJ |
| description | In Mexico, approximately 55% of the working population is employed informally, contributing 24.4% to the Gross Domestic Product (GDP) in 2022. This study analyzed the impact of wages, taxes, government spending, and unemployment on the informal economy of Mexico from 1980 to 2022, as well as its relationship with the tertiary sector’s contribution to the GDP. The methodology of the study was structural equation modeling. The findings of this study revealed that an increase in taxes, the unemployment rate, and the minimum wage in Mexico tends to be accompanied by a rise in informal employment. Finally, a unitary change in the latent variable informality affected the growth of the tertiary sector’s contribution to the GDP by 0.37 units. |
| format | Article |
| id | doaj-art-db06bab37a8e43fa9a022580a176e643 |
| institution | Kabale University |
| issn | 2227-7099 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj-art-db06bab37a8e43fa9a022580a176e6432024-11-26T18:00:59ZengMDPI AGEconomies2227-70992024-11-01121130110.3390/economies12110301Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican EconomyDavid Robles Ortiz0Raymundo Alexei Ambriz Torres1Escuela Superior de Economía, Instituto Politécnico Nacional, Mexico City 11350, MexicoEscuela Superior de Economía, Instituto Politécnico Nacional, Mexico City 11350, MexicoIn Mexico, approximately 55% of the working population is employed informally, contributing 24.4% to the Gross Domestic Product (GDP) in 2022. This study analyzed the impact of wages, taxes, government spending, and unemployment on the informal economy of Mexico from 1980 to 2022, as well as its relationship with the tertiary sector’s contribution to the GDP. The methodology of the study was structural equation modeling. The findings of this study revealed that an increase in taxes, the unemployment rate, and the minimum wage in Mexico tends to be accompanied by a rise in informal employment. Finally, a unitary change in the latent variable informality affected the growth of the tertiary sector’s contribution to the GDP by 0.37 units.https://www.mdpi.com/2227-7099/12/11/301government spendinginformal employmentMexico GDPSEM modelstaxesunemployment |
| spellingShingle | David Robles Ortiz Raymundo Alexei Ambriz Torres Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy Economies government spending informal employment Mexico GDP SEM models taxes unemployment |
| title | Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy |
| title_full | Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy |
| title_fullStr | Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy |
| title_full_unstemmed | Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy |
| title_short | Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy |
| title_sort | informal employment the tertiary sector and the gross domestic product a structural equations model for the mexican economy |
| topic | government spending informal employment Mexico GDP SEM models taxes unemployment |
| url | https://www.mdpi.com/2227-7099/12/11/301 |
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