Are Labor Markets Segmented in Argentina? A Semiparametric Approach

Sangeeta Pratap and Erwan Quintin ()
Additional contact information
Erwan Quintin: Federal Reserve Bank of Dallas

No 202, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: We use data from Argentina's household survey to evaluate the hypothesis that informal workers would expect higher wages in the formal sector. Using various definitions of informal employment we find that, on average, formal wages are higher than informal wages. Parametric tests suggest that a formal premium remains after controlling for individual and establishment characteristics. However, this approach suffers from several econometric problems, which we address with semiparametric methods. The resulting formal premium estimates prove either small and insignificant, or negative. In other words, we find no evidence that Argentina's labor markets are segmented along formal/informal lines.

Keywords: Segmented Labor Markets; Wages; Semiparametric Methods (search for similar items in EconPapers)
JEL-codes: C14 J42 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2002-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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http://ftp.itam.mx/pub/academico/inves/pratap/02-02.pdf First version, 2002 (application/pdf)

Related works:
Working Paper: Are labor markets segmented in Argentina? a semiparametric approach (2003)
Working Paper: Are labor markets segmented in Argentina? a semiparametric approach (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:cie:wpaper:0202

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