Regional wage gaps, education, and informality in an emerging country. The case of Colombia

Paula Herrera-Idárraga, Enrique Lopez-Bazo and Elisabet Motellón ()
Additional contact information
Elisabet Motellón: Faculty of Economics, University of Barcelona

No 201509, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: This paper uses Colombian micro-data to analyze the role of education and informality on regional wage differentials. Our hypothesis is that apart from differences in the endowment of human capital across regions, regional heterogeneity in the incidence of informality is another important source of regional wage inequality in developing and emerging countries. This is confirmed by the evidence from Colombia, which in addition reveals remarkable heterogeneity across territories in the wage return to individuals’ characteristics. Regional heterogeneity in returns to education is especially intense in the upper part of the wage distribution. In turn, heterogeneity in the informal pay penalty is more relevant in the lower part.

Keywords: Regions; Wage differentials; Quantile-based decompositions; Formal/Informal Jobs; Economic Development JEL classification: C21; J31; J38. (search for similar items in EconPapers)
Pages: 33 pages
Date: 2015-01, Revised 2015-01
New Economics Papers: this item is included in nep-cse, nep-iue, nep-lam and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ub.edu/irea/working_papers/2015/201509.pdf (application/pdf)

Related works:
Journal Article: Regional Wage Gaps, Education and Informality in an Emerging Country: The Case of Colombia (2016)
Working Paper: Regional wage gaps, education, and informality in an emerging country. The case of Colombia (2015)
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:ira:wpaper:201509

Access Statistics for this paper

More papers in IREA Working Papers from University of Barcelona, Research Institute of Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by Alicia García ().