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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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Bibliographic Info

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. 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, vol. 20(3), pages 389-419.
  2. repec:eid:wpaper:15956 is not listed on IDEAS
  3. Clark, Andrew E. & Oswald, Andrew J., 1994. "Satisfaction and comparison income," CEPREMAP Working Papers (Couverture Orange) 9408, CEPREMAP.
  4. Emma Samman, 2007. "Psychological and Subjective Well-being: A Proposal for Internationally Comparable Indicators," Oxford Development Studies, Taylor & Francis Journals, vol. 35(4), pages 459-486.
  5. Tim Hinks, 2010. "Job Satisfaction and Employment Equity in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(2), pages 237-255, March.
  6. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
  7. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May.
  8. Maria Ana Lugo, 2007. "Employment: A proposal for internationally comparable indicators," OPHI Working Papers ophiwp003, Queen Elizabeth House, University of Oxford.
  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, vol. 108(3), pages 604-631, June.
  10. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
  11. Chandra, Vandana & Khan, M Ali, 1993. "Foreign Investment in the Presence of an Informal Sector," Economica, 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 WP BRP 24/SOC/2013, National Research University Higher School of Economics.
  2. Federico Huneeus & Oscar Landerretche & Esteban Puentes, 2012. "Multidimensional Measure of Job Quality: Persistence and Heterogeneity in a Developing Country," Working Papers wp357, University of Chile, Department of Economics.

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