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Heterogeneous informality in Costa Rica and Nicaragua

Enrique Alaniz, T.H. Gindling, Catherine Mata and Diego Rojas

No wp-2021-50, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Informal work is often considered a place of employment for marginalized and vulnerable workers who have been rationed out of preferred formal work. However, informality can also be seen as a dynamic sector that budding entrepreneurs and those looking for flexible working conditions enter voluntarily. We use the methodology developed in Günther and Launov (2012) to test for the voluntary and involuntary nature of informal work in Nicaragua and Costa Rica, without making ad hoc assumptions about labour market segmentation and self-selection.

Keywords: Informality; Developing countries; Costa Rica; Nicaragua; Informal work; Labour market segmentation; Self-selection (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-dev, nep-ent and nep-iue
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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