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Rationing of Formal Sector Jobs and Informality: The Colombian Case

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  • Gustavo A. García
  • Erika Raquel Badillo

Abstract

We analyse the factors that affect the decision to find employment in the formal or informal sectors taking into account the fact that there is a rationing of formal sector jobs and hence a job queue to enter that sector. Using data from Colombia, we confirm that formal job rationing does exist and that it affects around 62 per cent of the workers that find themselves in the informal labour market. Further factors determining actively seeking formal employment include personal traits, the characteristics of human capital and of the household and the wage premiums associated with working in the formal sector. Copyright © 2017 John Wiley & Sons, Ltd.

Suggested Citation

  • Gustavo A. García & Erika Raquel Badillo, 2018. "Rationing of Formal Sector Jobs and Informality: The Colombian Case," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(5), pages 760-789, July.
    • Handle: RePEc:wly:jintdv:v:30:y:2018:i:5:p:760-789
    DOI: 10.1002/jid.3310
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    Cited by:

    1. Gustavo A. García & Edgar Julián Muñoz González & Stefany Gallego Ortiz, 2018. "Análisis Espacial de la Informalidad Laboral a Nivel Intra-urbano," Documentos de Trabajo de Valor Público 16499, Universidad EAFIT.
    2. Gustavo A. García, 2019. "Agglomeration economies in the presence of an informal sector: the Colombian case," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 355-388.
    3. Carla Moreno, 2020. "Mandatory savings, informality and liquidity constraints," Economics Bulletin, AccessEcon, vol. 40(4), pages 3274-3295.
    4. Rayees Ahmad Sheikh & Sarthak Gaurav & Trupti Mishra, 2021. "Race among equals? An inquiry into the segmentation of Indian labor market," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2180-2206, November.
    5. Gustavo Adolfo García & Diego René Gonzales Miranda & Oscar Gallo & Juan Pablo Roman Calderon, 2020. "Millennials and the gender wage gap: Do millennial women face a glass ceiling?," Documentos de Trabajo de Valor Público 18409, Universidad EAFIT.
    6. David Castells & Paula Herrera, 2019. "Cities in the 21st century: a view from the developing world," REGION, European Regional Science Association, vol. 6, pages 1-6.

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