Persistence of Informality in a Developing Country
19 Pages Posted: 3 May 2012
Date Written: March 29, 2012
Abstract
Informality is a common phenomenon in developing countries and an unusual one in industrialized countries. The persistence of informal employment is indicative of the impossibility of moving out of this status for a certain period of time. Using pseudo panel data, empirical evidence is presented to show that this phenomenon occurs in a developing country like Colombia where education helps mitigate said persistent occurrence. The authors also present evidence that a minimum salary increase does not only result in increased informality, but also increases the persistence of informality. This kind of evidence can be used for discussing the persistence of informality in other developing countries.
Keywords: Dynamic Informality, Pseudo Panel, Probit Models
JEL Classification: C36, C51 J81, J88
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico
By Xiaodong Gong, Arthur van Soest, ...
-
Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico
By Xiaodong Gong, Arthur van Soest, ...
-
Enforcement of Regulation, Informal Labor and Firm Performance
-
Wage Differentials and Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico
By Xiaodong Gong and Arthur van Soest
-
By Tito Boeri and Pietro Garibaldi
-
Enforcement of Labor Regulation, Informal Labor, and Firm Performance
-
By Aureo De Paula and José A. Scheinkman
-
By Aureo De Paula and José A. Scheinkman
-
Shadow Activity and Unemployment in a Depressed Labour Market
By Tito Boeri and Pietro Garibaldi
-
By Pablo Fajnzylber, William F. Maloney, ...