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Revisiting Informality: Evidence from Employment Characteristics and Job Satisfaction in Chile

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  • Lea Cassar

Abstract

We use data from a unique, nationally representative survey to investigate the relationship between job satisfaction and employment characteristics in Chile. Consistent with the dualistic models, job protection appears to be a positive determinant of job satisfaction rather than a cost to be avoided by engaging in informal activities. Further, we find self-employed workers to be penalized by the lack of valuable workplace facilities, such as decent toilets and clean water. However, being self-employed does not necessarily mean taking the ‘bad’ jobs. We show that self-employed workers in Chile, like their counterparts in industrialized countries, derive procedural utility from being independent.

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Paper provided by Queen Elizabeth House, University of Oxford in its series OPHI Working Papers with number ophiwp041.

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Date of creation: Nov 2010
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Handle: RePEc:qeh:ophiwp:ophiwp041

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  1. Hinks, Tim, 2009. "Job Satisfaction and Employment Equity in South Africa," Department of Economics Working Papers, University of Bath, Department of Economics 15956, University of Bath, Department of Economics.
  2. Maria Ana Lugo, 2007. "Employment: A proposal for internationally comparable indicators," OPHI Working Papers, Queen Elizabeth House, University of Oxford ophiwp003, Queen Elizabeth House, University of Oxford.
  3. Andrew E. Clark and Andrew J. Oswald, . "Satisfaction and Comparison Income," Economics Discussion Papers, University of Essex, Department of Economics 419, University of Essex, Department of Economics.
  4. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(1), pages 26-60, January.
  5. Pablo Fajnzylber & William Maloney & Gabriel Montes Rojas, 2006. "Microenterprise Dynamics in Developing Countries: How Similar are They to Those in the Industrialized World? Evidence from Mexico," World Bank Economic Review, World Bank Group, World Bank Group, vol. 20(3), pages 389-419.
  6. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, Elsevier, vol. 45(4-6), pages 680-691, May.
  7. Emma Samman, 2007. "Psychological and Subjective Well-being: A Proposal for Internationally Comparable Indicators," Oxford Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(4), pages 459-486.
  8. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, Elsevier, vol. 8(2), pages 223-242, May.
  9. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(3), pages 604-631, June.
  10. Chandra, Vandana & Khan, M Ali, 1993. "Foreign Investment in the Presence of an Informal Sector," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 60(237), pages 79-103, February.
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Cited by:
  1. Anna Zudina, 2013. "Do informal workers make an underclass? An analysis of subjective social status," HSE Working papers, National Research University Higher School of Economics WP BRP 24/SOC/2013, National Research University Higher School of Economics.
  2. Paula Carrasco, 2012. "El efecto de las condiciones de ingreso al mercado de trabajo en los jóvenes uruguayos. Un análisis basado en la protección de la seguridad social," Documentos de Trabajo (working papers), Instituto de Economía - IECON 12-13, Instituto de Economía - IECON.
  3. Federico Huneeus & Oscar Landerretche & Esteban Puentes, 2012. "Multidimensional Measure of Job Quality: Persistence and Heterogeneity in a Developing Country," Working Papers, University of Chile, Department of Economics wp357, University of Chile, Department of Economics.

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