Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour market

Paula Herrera-Idárraga, Enrique Lopez-Bazo and Elisabet Motellón ()

No 201307, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: This paper examines the returns to education taking into consideration the existence of educational mismatches in the formal and informal employment of a developing country. Results show that the returns of surplus, required and deficit years of schooling are different in the two sectors. Moreover, they suggest that these returns vary along the wage distribution, and that the pattern of variation differs for formal and informal workers. In particular, informal workers face not only lower returns to their education, but suffer a second penalty associated with educational mismatches that puts them at a greater disadvantage compare to their formal counterparts.

Keywords: Educational Mismatch; Formal/Informal Employment; Economic Development; Wage Gap. JEL classification: O17; J21; J24. (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-05, Revised 2013-05
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-iue and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour Market (2015)
Working Paper: Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour market (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:201307

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