Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City

Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City

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 collectio...

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Bibliographic Details
Main Author: Zárate, Román D.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2022
Subjects:
PUBLIC TRANSPORTATION
URBAN TRANSPORT
URBAN INFRASTRUCTURE
FORMAL ECONOMY
INFORMAL URBAN ECONOMY
ACCESS TO EMPLOYMENT
SPATIAL MISALLOCATION
URBAN TRANSPORT INFRASTRUCTURE
ALLOCATIVE EFFICIENCY
INFORMALITY
LABOR MARKET INFORMALITY
Online Access:http://documents.worldbank.org/curated/en/099332303302232640/IDU04600b00f0f3e404c4f085520cd82c82a60a5
http://hdl.handle.net/10986/37274
id okr-10986-37274
recordtype oai_dc
spelling okr-10986-372742022-04-09T09:21:48Z Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City Zárate, Román D. PUBLIC TRANSPORTATION URBAN TRANSPORT URBAN INFRASTRUCTURE FORMAL ECONOMY INFORMAL URBAN ECONOMY ACCESS TO EMPLOYMENT SPATIAL MISALLOCATION URBAN TRANSPORT INFRASTRUCTURE ALLOCATIVE EFFICIENCY INFORMALITY LABOR MARKET INFORMALITY 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. 2022-04-07T16:19:29Z 2022-04-07T16:19:29Z 2022-03 Working Paper http://documents.worldbank.org/curated/en/099332303302232640/IDU04600b00f0f3e404c4f085520cd82c82a60a5 http://hdl.handle.net/10986/37274 English Policy Research Working Paper;9990 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PUBLIC TRANSPORTATION
URBAN TRANSPORT
URBAN INFRASTRUCTURE
FORMAL ECONOMY
INFORMAL URBAN ECONOMY
ACCESS TO EMPLOYMENT
SPATIAL MISALLOCATION
URBAN TRANSPORT INFRASTRUCTURE
ALLOCATIVE EFFICIENCY
INFORMALITY
LABOR MARKET INFORMALITY
spellingShingle PUBLIC TRANSPORTATION
URBAN TRANSPORT
URBAN INFRASTRUCTURE
FORMAL ECONOMY
INFORMAL URBAN ECONOMY
ACCESS TO EMPLOYMENT
SPATIAL MISALLOCATION
URBAN TRANSPORT INFRASTRUCTURE
ALLOCATIVE EFFICIENCY
INFORMALITY
LABOR MARKET INFORMALITY
Zárate, Román D.
Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City
geographic_facet Latin America & Caribbean
Mexico
relation Policy Research Working Paper;9990
description 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.
format Working Paper
author Zárate, Román D.
author_facet Zárate, Román D.
author_sort Zárate, Román D.
title Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City
title_short Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City
title_full Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City
title_fullStr Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City
title_full_unstemmed Spatial Misallocation, Informality, and Transit Improvements : Evidence from Mexico City
title_sort spatial misallocation, informality, and transit improvements : evidence from mexico city
publisher World Bank, Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/en/099332303302232640/IDU04600b00f0f3e404c4f085520cd82c82a60a5
http://hdl.handle.net/10986/37274
_version_ 1764486849284276224

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