Labor Informality: Choice or Sign of Segmentation? A Quantile Regression Approach at the Regional Lvel for Colombia

Gustavo García Cruz ()

No 11213, Archivos de Economía from Departamento Nacional de Planeación

Abstract: The labor market in developing countries is remarkably heterogeneous with a small productive formal sector, enjoying high wages and attractive employment conditions and another large informal sector with low productivity and volatile wages. The informal sector is particularly diverse. In this paper we examine the heterogeneity of the informal sector at regional level in Colombia. In general, our ndings suggest that, both voluntary and involuntary informal employment co-exist by choice and as a result of labor market segmentation. We also nd that there are striking di erences in labor market characteristics between cities, in particular in the traditional informal segment.

Keywords: Informality; local labor markets; quantile regression; selection bias; formal/informal wage gap decomposition (search for similar items in EconPapers)
JEL-codes: C21 J31 J42 O17 (search for similar items in EconPapers)
Pages: 40
Date: 2014-04-01
New Economics Papers: this item is included in nep-iue, nep-lab and nep-ure
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Related works:
Journal Article: Labor Informality: Choice or Sign of Segmentation? A Quantile Regression Approach at the Regional Level for Colombia (2017)
Working Paper: Labor Informality: Choice or Sign of Segmentation? A Quantile Regression Approach at the Regional Level for Colombia (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000118:011213

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