Informality in Colombia: A New Proposal

33 Pages Posted: 10 Jun 2010

See all articles by Carlos G. Ospino

Carlos G. Ospino

Universidad de los Andes, Colombia - Department of Economics

Paola Marcela Roldan

Universidad del Norte

Diana Fernández

Fundesarrollo

Date Written: June 6, 2010

Abstract

In this article we propose a new informality definition keeping in mind the vulnerability of the human being, especially when she does not have social security coverage. In first place, we analyze the pertinence of this definition based on the Colombian regulation exploring the pros and cons of belonging to the social security system making the legal payments. Second, we present the theoretical model of being informal by health in Colombia. Then, we search the factors related to the choice of being a worker and to be informal by a multinomial logistic regression. Finally, we estimate the probability of being informal analyzing not only the sociodemographic characteristics, but if the time spent searching for a job affects in a significant manner the probability of being an informal worker. The period of analysis comprehends second quarters of the continuous household surveys between 2001 and 2008, for 13 cities and metropolitan areas.

Keywords: Informality, social security

JEL Classification: O17, J31, J32

Suggested Citation

Ospino, Carlos G. and Roldan, Paola Marcela and Fernández, Diana, Informality in Colombia: A New Proposal (June 6, 2010). Available at SSRN: https://ssrn.com/abstract=1622705 or http://dx.doi.org/10.2139/ssrn.1622705

Carlos G. Ospino (Contact Author)

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

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

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

Diana Fernández

Fundesarrollo ( email )

Via 40 # 36-135 Locales 5 y 6
Barranquilla, Atlantico
Colombia

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