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Are Informal Workers Secondary Workers?: Evidence for Argentina

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  • María Laura Alzúa

    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

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    Abstract

    Empirical studies attempting at testing dualism in developing countries often rely on an ex-ante definition of the primary and the secondary sector. Many times this methodology causes biases in the estimation due to sample selection problems. Also, such definitions may be arbitrary sometimes. We use twenty seven years of Household Data in order to test for the existence dual labor markets in Argentina. We estimated an endogenous switching model with unknown regime without defining ex-ante sector attachment. We find evidence of dualism for both periods analyzed. However, the diferences between the two sectors have signi¯cantly changed over time. Finally, our estimations also corroborate the fact that using the usual ex-ante definition of sector attachment may not be adequate for testing dualism.

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    Bibliographic Info

    Paper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0073.

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    Length: 42 pages
    Date of creation: Aug 2008
    Date of revision:
    Handle: RePEc:dls:wpaper:0073

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    1. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
    2. Bulow, Jeremy I & Summers, Lawrence H, 1986. "A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 376-414, July.
    3. Basch, Michael & Paredes-Molina, Ricardo D., 1996. "Are there dual labor markets in Chile?: empirical evidence," Journal of Development Economics, Elsevier, vol. 50(2), pages 297-312, August.
    4. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
    5. William W. Gould & Jeffrey Pitblado & Brian Poi, 2010. "Maximum Likelihood Estimation with Stata," Stata Press books, StataCorp LP, edition 4, number ml4, April.
    6. William T. Dickens & Lawrence F. Katz, 1986. "Interindustry Wage Differences and Industry Characteristics," NBER Working Papers 2014, National Bureau of Economic Research, Inc.
    7. William T. Dickens & Kevin Lang, 1992. "Labor Market Segmentation Theory: Reconsidering the Evidence," NBER Working Papers 4087, National Bureau of Economic Research, Inc.
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