Informality and the School-to-Work Transition: Evidence of Young Workers’ Preferences for Informal Jobs
Posted: 1 Feb 2015
Date Written: December 31, 2013
This study provides evidence on the preferences for informal employment among young adults in Colombia. While labor informality has usually been associated to its excluding nature, much of the recent literature has emphasized that individuals may actively choose to work in this sector. There are two main contributions of this research. On the one hand, it provides previously unavailable empirical results on the preferences for informality among potential entrants to the labor market by exploring who they are and the reasons behind their choice. On the other hand, it also presents evidence on the causal impact of providing information on the returns to education in formal jobs on these preferences.
Keywords: school-to-work transition, labor supply, preferences, informality, Colombia
JEL Classification: J13, J42, O17
Suggested Citation: Suggested Citation