Analysis of the Determining Factors of Informal Micro Entrepreneurs, 2016-2020

ABSTRACT

The objective of this research is to offer a trajectory of the factors that determine that Mexican heads of families decide to participate in the most visible informal microenterprise sector;before and during COVID-19. The data from the National Household Income and Expenditure Survey (ENIGH) and prepared by the National Institute of Statistics, Geography and Informatics (INEGI) of Mexico have been used and a Heckit model has been applied for its treatment and analysis. The findings show that income is the main cause of the informal economy of the heads of family, thus confirming the choice as a solution to economic difficulties. In addition, it is shown that there is a labor supply that excludes the demand with a higher educational level. In addition, informal enterprises are identified by higher remuneration for time spent, flexibility and reduction in working time, participation of more household members, and lower remuneration for women.