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Participation and Sector Selection in Nicaragua

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Author Info
Pozzoli, Dario () (Department of Economics, Aarhus School of Business)
Ranzani, Marco () (Universita’ Cattolica)

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Abstract

This paper investigates the structure of the labor market in Nicaragua and is aimed at understanding the determinants of the choice between a number of segments, namely inactivity, unemployment, agriculture, formal and informal sector. In addition, a model with a separate participation equation is estimated: it allows understanding that age is mainly a supply side factor, while education is an important element determining employers’ choice. Information networks, captured by the presence of a household member working in the formal sector, and geographical barriers to mobility also play a leading role.

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File URL: http://www.hha.dk/nat/wper/09-8_dpoz.pdf
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Publisher Info
Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 09-8.

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Length: 41 pages
Date of creation: 15 May 2009
Date of revision:
Handle: RePEc:hhs:aareco:2009_008

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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
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Related research
Keywords: Segmentation; Multisector labor markets; Nicaragua;

Find related papers by JEL classification:
J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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This page was last updated on 2009-10-25.

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