Is There an Informal Employment Wage Premium? Evidence from Tajikistan

Reza (Gholamreza) Arabsheibani () and Anita Staneva

No 6727, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper defines informal sector employment and decomposes the difference in earnings distributions between formal and informal sector employees in Tajikistan for 2007. Using the quantile regression decomposition technique proposed by Machado and Mata (2005), we find a significant informal employment wage premium across the whole earnings distribution. This contrast with earlier studies and casts doubt on the recent literature showing that the informal sector is poorly rewarded. It seems to be the case that the informal employment in Tajikistan is the main source of income.

Keywords: quantile regression decomposition; formal/informal employment (search for similar items in EconPapers)
JEL-codes: C14 J21 J30 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-07
New Economics Papers: this item is included in nep-dev, nep-iue and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published - published in: IZA Journal of Labor & Development, 2014, 3:1

Downloads: (external link)
https://docs.iza.org/dp6727.pdf (application/pdf)

Related works:
Journal Article: Is there an informal employment wage premium? Evidence from Tajikistan (2014)
Working Paper: Is there an informal employment wage premium? Evidence from Tajikistan (2014)
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:iza:izadps:dp6727

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().