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The impact of informality on earnings inequality: Unconditional quantile regressions

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  • Lukiyanova, Anna

    () (National Research University Higher School of Economics, Moscow, Russia)

Abstract

In this paper, we investigate the impact of informality on earnings inequality in Russia using the RLMS–HSE data for 2000–2010. We apply decompositions based on the recentered influence functions of unconditional quantiles. Our results confirm that informality increases the earnings polarization widening both tails of the distribution. This effect, albeit small, is statistically significant. Changes in structure and wage effects of informality did not have significant contribution to the decline in overall earnings inequality in 2000–2010, except for a group of workers without permanent job.

Suggested Citation

  • Lukiyanova, Anna, 2013. "The impact of informality on earnings inequality: Unconditional quantile regressions," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 32(4), pages 3-28.
  • Handle: RePEc:ris:apltrx:0221
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    References listed on IDEAS

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    6. Rosser, J. Jr. & Rosser, Marina V. & Ahmed, Ehsan, 2000. "Income Inequality and the Informal Economy in Transition Economies," Journal of Comparative Economics, Elsevier, vol. 28(1), pages 156-171, March.
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    More about this item

    Keywords

    informal employment; earnings inequality; quantile regression; decomposition.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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