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Recent decline in wage inequality and formalization of the labour market in Argentina

Author

Listed:
  • Luis Beccaria
  • Roxana Maurizio
  • Gustavo V�zquez

Abstract

Labour market conditions improved during the 2000s in Latin America, a process that included a reduction in the magnitude of informal employment. A decline of wage inequality was another feature of this period. Both dynamics were particularly intense in Argentina. The purpose of this study is to evaluate the role played by the process of formalization of the labour market that occurred in Argentina during that period on the reduction of income inequality, while additionally taking into account other factors that might have also contributed to such dynamics of income inequality. The method employed is a decomposition proposed by Firpo, Fortin and Lemieux, which allows extending the Oaxaca-Blinder approach to decompose some distributive statistics of income between a 'composition effect' and a 'returns effect'. The study concludes that the process of increasing labour market formalization had an equalizing effect over the period, a finding that had not been emphasized in previous studies.

Suggested Citation

  • Luis Beccaria & Roxana Maurizio & Gustavo V�zquez, 2015. "Recent decline in wage inequality and formalization of the labour market in Argentina," International Review of Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 677-700, September.
    • Handle: RePEc:taf:irapec:v:29:y:2015:i:5:p:677-700
    DOI: 10.1080/02692171.2015.1054369
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    References listed on IDEAS

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    Cited by:

    1. Roxana Maurizio & Ana Paula Monsalvo, 2021. "Informality, labour transitions, and the livelihoods of workers in Latin America," WIDER Working Paper Series wp-2021-19, World Institute for Development Economic Research (UNU-WIDER).
    2. Facundo Quiroga‐Martínez & Esteban Fernández‐Vázquez, 2021. "Education as a key to reduce spatial inequalities and informality in Argentinean regional labour markets," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 177-189, February.
    3. Luis Beccaria & Roxana Maurizio & Martin Trombetta & Gustavo Vázquez, 2016. "Una evaluación del efecto scarring en Argentina," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 77, August.
    4. Walter Sosa Escudero & Javier Alejo & Leonardo Gasparini & Gabriel Montes Rojas, 2021. "A decomposition method to evaluate the "paradox of progress", with evidence for Argentina," Asociación Argentina de Economía Política: Working Papers 4523, Asociación Argentina de Economía Política.
    5. John Ariza & Gabriel Montes-Rojas, 2019. "Decomposition methods for analyzing inequality changes in Latin America 2002–2014," Empirical Economics, Springer, vol. 57(6), pages 2043-2078, December.
    6. Roxana Maurizio & Luis Beccaria & Ana Monsalvo, 2022. "Labour Formalization and Inequality: The Distributive Impact of Labour Formalization in Latin America since 2000," Development and Change, International Institute of Social Studies, vol. 53(1), pages 117-165, January.
    7. Federico Favata & Julián Leone & Jorge Lo Cascio, 2021. "Youth employment in Argentina: first effect of the pandemic," Asociación Argentina de Economía Política: Working Papers 4465, Asociación Argentina de Economía Política.
    8. Hadrien Saiag, 2020. "Financialization from the margins," Post-Print hal-02516543, HAL.
    9. Roxana Maurizio & Ana Paula Monsalvo & María Sol Catania & Silvana Martinez, 2023. "Short-term labour transitions and informality during the COVID-19 pandemic in Latin America," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-21, December.

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