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Microeconometric decompositions of aggregate variables: an application to labour informality in Argentina

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  • L. C. Gasparini

Abstract

This article illustrates the use of microeconometric decomposition techniques to characterize changes in aggregate variables. In particular, it studies the effect of changes in the employment structure on the labour informality rate for salaried workers in the greater Buenos Aires area (Argentina). To that aim it computes the difference between the informality rate at moment t and the rate that results from combining the population at moment t with the parameters estimated at moment t that link observable individual characteristics to the informality decision. The article concludes that the deep change of the employment structure in Argentina during the 1980s and the 1990s has had a significant but minor effect on the labour informality rate.

Suggested Citation

  • L. C. Gasparini, 2002. "Microeconometric decompositions of aggregate variables: an application to labour informality in Argentina," Applied Economics, Taylor & Francis Journals, vol. 34(18), pages 2257-2266.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2257-2266
    DOI: 10.1080/00036840210127231
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    Cited by:

    1. Daniel Artana, 2007. "Are Latin-American Countries Decentralized?," Working Papers 92, FIEL.
    2. D. Artana, M. Cristini, J. Pantano, 2001. "El agro y el país: una estrategia para el futuro," Working Papers 71, FIEL.
    3. Melanie Khamis, 2012. "Is Informal Sector Work an Alternative to Workfare Benefits? The Case of Pre-program Expansion and Economic Crisis," Review of Development Economics, Wiley Blackwell, vol. 16(4), pages 579-593, November.
    4. Leonardo Gasparini, 2005. "Protección Social y Empleo en América Latina: Estudio sobre la Base de Encuestas de Hogares," CEDLAS, Working Papers 0017, CEDLAS, Universidad Nacional de La Plata.
    5. Gasparini Leonardo & Leonardo Tornaroli, 2009. "Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE.
    6. Evelyn Benvin & Marcela Perticara, 2007. "análisis de los cambios en la participación laboral femenina en Chile," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 22(1), pages 71-92, June.
    7. Demombynes, Gabriel & Metzler, Johannes, 2008. "Connecting the unobserved dots : a decomposition analysis of changes in earnings inequality in urban Argentina, 1980-2002," Policy Research Working Paper Series 4624, The World Bank.
    8. Schröter, Lars, 2008. "Die Rolle des informellen Sektors in der wirtschaftlichen Entwicklung Argentiniens [The role of the informal sector in the economic development of Argentina]," MPRA Paper 11661, University Library of Munich, Germany, revised 14 Nov 2008.
    9. Martín Cicowiez & Leonardo Gasparini & Federico Gutierrez & Leopoldo Tornarolli, 2006. "Areas Rurales y Objetivos de Desarrollo del Milenio en America Latina y el Caribe," CEDLAS, Working Papers 0043, CEDLAS, Universidad Nacional de La Plata.
    10. Santiago Urbiztondo, 2006. "Privatization of infrastructure facilities in Latin America: full economic effects and perceptions," Working Papers 88, FIEL.

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