Women’s Participation to Self-employment and Informal Sector

Isiaka E. Esema
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Isiaka E. Esema: International Community Education Association

Journal of Women's Entrepreneurship and Education, 2011, issue 1-2, 108-116

Abstract: Using comparable micro-level data from three countries, we ask what type of person works in the informal sector and whether informal workers earn lower wages than observationally equivalent workers in the formal sector. The characteristics of informal workers are similar across countries. Surprisingly, when we control for these personal characteristics, we find a significant wage premium associated with formal employment. A model of endogenous selection offers little help in explaining the differences in wage patterns. The research casts doubt on the received wisdom that the informal sector, always and everywhere, is a poorly-paid but easily-entered refuge for those who have no other employment opportunities.

Keywords: Women; Informal workers; self-employment; labour market (search for similar items in EconPapers)
JEL-codes: B54 J21 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ibg:jwejou:y:2011:i:1-2:p:108-116

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