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

Gustavo García Cruz ()

MPRA Paper from University Library of Munich, Germany

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 findings suggest that, both voluntary and involuntary informal employment co-exist by choice and as a result of labor market segmentation. We also find that there are striking differences 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)
Date: 2014-04-01
New Economics Papers: this item is included in nep-iue, nep-lab, nep-lam, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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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 Lvel for Colombia (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:55224

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