This study considers those wage earners who are covered by a social security program as part of the formal sector and those wage earners who are not covered by any social security program as part of the informal sector. Using 1994 Household Expenditure Survey I first examine how individuals are selected into nonparticipation and employment in the covered, uncovered and other sectors. Then, I estimate the selectivity corrected wage equations to ezamine wage determination in these sectors.
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Paper provided by Economic Research Forum in its series Papers with number
9927.
Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
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