Labor Informality: The Colombian Case
30 Pages Posted: 26 Feb 2010 Last revised: 1 Mar 2010
Date Written: February 23, 2010
In this article we explore factors related to the probability of being an informal worker in Colombia; in particular, we are interested in analyzing whether the time spent searching for a job affects in a significant manner the probability of being an informal worker. We also explore characteristics that affect wage differentials between formal and informal workers. The period of analysis comprehends second quarters of the continuous household surveys between 2001 and 2005, for 13 cities and metropolitan areas. We find evidence that unemployment duration has a positive effect on the probability of being an informal worker in Colombia. Household heads have a lower probability of being informal, due in great part to the fact that their social security affiliation guarantees her family access to health services. Informal workers, during the period of analysis earn labor income 30% lower than formal workers, after controlling for socioeconomics characteristics.
Note: Downloadable document is in Spanish.
Keywords: Informal workers, job searching, wage differentials
JEL Classification: O17, J31, J32
Suggested Citation: Suggested Citation