Who Ends Up in Informality: Impact of Characteristics and Search Time

Revista de Economía del Caribe, No. 4, pp. 148-180, 2009

Posted: 25 Mar 2010 Last revised: 10 Jul 2012

See all articles by Paola Marcela Roldan

Paola Marcela Roldan

Universidad del Norte

Carlos G. Ospino

Universidad de los Andes, Colombia - Department of Economics

Date Written: 2009

Abstract

The purpose of this paper is to analyze informal employment in three metropolitan areas, Barranquilla, Cartagena y Montería using information from the second quarters of the Continuous Household Survey for years 2001 to 2005. Two definitions of informality were used, the official (DANE) and one based on social security (Pensions). Based on these, informal workers from the metropolitan areas are characterized according to their socioeconomic characteristics and the time it took them to find their current job. We find in general, that age, education, marital status and being head of a household plays a significant role in explaining the lower likelihood of becoming an informal worker, while longer spells of job searching increases this likelihood. As part of policy recommendations to reduce the incidence of informality in the Caribbean region are, to ensure at least the completion of secondary schooling, implementing programs that ensure younger worker’s insertion into the labor market and active labor market policies that reduce job searching spells.

Keywords: Informality, Labor Markets, Job Searching

JEL Classification: J21, J24, J42, J64

Suggested Citation

Roldan, Paola Marcela and Ospino, Carlos G., Who Ends Up in Informality: Impact of Characteristics and Search Time (2009). Revista de Economía del Caribe, No. 4, pp. 148-180, 2009. Available at SSRN: https://ssrn.com/abstract=1577658

Paola Marcela Roldan

Universidad del Norte ( email )

Km5 Via Puerto Colombia
Carrera 58 # 82-84 Apt 6B
Barranquilla, Atlantico
Colombia
+ 575 509509 (Phone)

HOME PAGE: http://www.uninorte.edu.co

Carlos G. Ospino (Contact Author)

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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