Competitive and Segmented Informal Labor Markets

Isabel Günther and Andrey Launov ()

No 153, Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research

Abstract: It has recently been argued that the informal sector of labor markets in de- veloping economies shows a dual structure with part of the informal sector being competitive to the formal sector and part of the informal sector being the result of market segmentation. To test this hypothesis, we formulate an econometric model which allows for a heterogeneous informal sector with unobserved individ- ual sector a±liation in the informal sector and which takes into account selection bias induced by the employment decision of individuals. Our empirical results for the urban labor market in C^ote d\'Ivoire show the existence of both competitive and segmented employment in the informal sector.

Keywords: developing economy; informal labor market; segmentation; comparative advantage; selection bias; latent structure; finite mixture models (search for similar items in EconPapers)
JEL-codes: J42 O17 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2007-01-09
New Economics Papers: this item is included in nep-cse and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www2.vwl.wiso.uni-goettingen.de/ibero/working_paper_neu/DB153.pdf (application/pdf)

Related works:
Working Paper: Competitive and Segmented Informal Labor Markets (2006)
Working Paper: Competitive and Segmented Informal Labor Markets (2006)
Working Paper: Competitive and Segmented Informal Labor Markets (2006)
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:got:iaidps:153

Access Statistics for this paper

More papers in Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Jaep ().