Persistence of informality in a developing country

Jhon Mora Rodriguez () and Juan Muro ()

No 9593, Borradores de Economía y Finanzas from Universidad Icesi

Abstract: Informality is a common phenomenon in developing countries and an unusual one in industrialized countries. The persistence of informal employment is indicative of the impossibility of moving out of this status for a certain period of time. Using pseudo panel data, empirical evidence is presented to show that this phenomenon occurs in a developing country like Colombia where education helps mitigate said persistent occurrence. The authors also present evidence that a minimum salary increase does not only result in increased informality, but also increases the persistence of informality. This kind of evidence can be used for discussing the persistence of informality in other developing countries.

Keywords: Dynamic Informality; Pseudo Panel; Probit Models (search for similar items in EconPapers)
JEL-codes: C36 C51 J81 J88 (search for similar items in EconPapers)
Pages: 16
Date: 2012-02-28
New Economics Papers: this item is included in nep-iue and nep-lab
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ssrn.com/abstract=2049980

Related works:
Working Paper: Persistence of informality in a developing country (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000130:009593

Access Statistics for this paper

More papers in Borradores de Economía y Finanzas from Universidad Icesi Contact information at EDIRC.
Bibliographic data for series maintained by Coordinador ICESI ().