Informality in Colombia: A New Proposal
33 Pages Posted: 10 Jun 2010
Date Written: June 6, 2010
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: Suggested Citation