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Is Informality a Good Measure of Job Quality? Evidence from Job Satisfaction Data

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  • Carmen Pages

    ()

  • Lucia Madrigal

    ()

Abstract

The formality status of a job is the most widely used indicator of job quality in developing countries. However, a number of studies argue that, at least for some workers, the informality status may be driven by choice rather than exclusion. This paper uses job satisfaction data from three low-income countries (Honduras, Guatemala and El Salvador) to assess whether informal jobs are less valued than formal jobs. The paper finds substantial differences in job satisfaction within different types of informal jobs. More importantly, the results suggest that across different definitions, informality does not yield the same ranking of job quality as self-reported measures of job satisfaction. This correspondence varies across countries, and it seems to be lower for less-skilled workers.

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Bibliographic Info

Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4603.

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Date of creation: Dec 2008
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Handle: RePEc:idb:wpaper:4603

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Keywords: Job Satisfaction; Informality; Quality of Employment; Honduras; El Salvador; Guatemala.;

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Cited by:
  1. Rita Almeida & Pedro Carneiro, Renata Narita, 2013. "Producing Higher Quality Jobs: Enforcement of Mandated Benefits across Brazilian Cities between 1996-2007," Working Papers, Department of Economics 2013_22, University of São Paulo (FEA-USP).
  2. Florencia López Bóo & Lucía Madrigal & Carmen Pagés-Serra, 2009. "Part-Time Work, Gender and Job Satisfaction: Evidence from a Developing Country," IDB Publications 4131, Inter-American Development Bank.
  3. Cortés Aguilar Alexandra & Teresa Garcia-Muñoz & Ana I. Moro Egido, 2013. "Heterogeneous Self-employment and Subjective Well-Being. Evidence from Latin America," ThE Papers 13/05, Department of Economic Theory and Economic History of the University of Granada..
  4. Falco, Paolo & Maloney, William F. & Rijkers, Bob & Sarrias, Mauricio, 2012. "Heterogeneity in subjective wellbeing : an application to occupational allocation in Africa," Policy Research Working Paper Series 6244, The World Bank.
  5. Anna Zudina, 2013. "Do informal workers make an underclass? An analysis of subjective social status," HSE Working papers WP BRP 24/SOC/2013, National Research University Higher School of Economics.
  6. Aterido, Reyes & Hallward-Driemeier, Mary & Pagés, Carmen, 2011. "Does Expanding Health Insurance Beyond Formal-Sector Workers Encourage Informality? Measuring the Impact of Mexico's Seguro Popular," IZA Discussion Papers 5996, Institute for the Study of Labor (IZA).
  7. Valentina Calderón & Ioana Marinescu, 2011. "The Impact of Colombia's Pension and Health Insurance Systems on Informality," IDB Publications 62338, Inter-American Development Bank.
  8. Isabelle Bensidoun & Ali Souag, 2013. "Emploi informel en Algérie : caractéristiques et raisons d'être," Working Papers halshs-00965775, HAL.

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