Participation and Sector Selection in Nicaragua

Dario Pozzoli () and Marco Ranzani

No 09-8, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: This paper investigates the structure of the labor market in Nicaragua and is aimed at understanding the determinants of the choice between a number of segments, namely inactivity, unemployment, agriculture, formal and informal sector. In addition, a model with a separate participation equation is estimated: it allows understanding that age is mainly a supply side factor, while education is an important element determining employers’ choice. Information networks, captured by the presence of a household member working in the formal sector, and geographical barriers to mobility also play a leading role.

Keywords: Segmentation; Multisector labor markets; Nicaragua (search for similar items in EconPapers)
JEL-codes: J42 O17 O54 (search for similar items in EconPapers)
Date: 2009-05-15

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Persistent link: http://EconPapers.repec.org/RePEc:hhs:aareco:2009_008

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