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An approximation to the Informal-formal wage gap in Colombia 2008-2012

Listed author(s):
  • Nancy Daza

    ()

  • Luis Fernando Gamboa

    ()

Abstract: This document provides recent evidence about the persistency of wage gaps between formal and informal workers in Colombia by using a non-parametric method proposed by Ñopo (2008a). Over a rich dataset at a household level during 2008-2012, it is found that formal workers earn between 30 to 60 percent more, on average, than informal workers. Despite of the formality definition - structuralist or institucionalist- adopted, it is clear that formal workers have more economic advantages than informal ones, but after controlling by demographic and labor variables an important fraction of the gap still remains unexplained.

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File URL: http://repository.urosario.edu.co/bitstream/handle/10336/10947/10990.pdf
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Paper provided by UNIVERSIDAD DEL ROSARIO in its series DOCUMENTOS DE TRABAJO with number 010990.

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Length: 31
Date of creation: 03 Jun 2013
Handle: RePEc:col:000092:010990
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  1. Alejandro Hoyos & Hugo Ñopo & Ximena Peña, 2010. "The Persistent Gender Earnings Gap in Colombia, 1994-2006," DOCUMENTOS CEDE 007095, UNIVERSIDAD DE LOS ANDES-CEDE.
  2. Pradhan, M.P. & van Soest, A.H.O., 1993. "Formal and informal sector employment in urban areas of Bolivia," Discussion Paper 1993-11, Tilburg University, Center for Economic Research.
  3. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
  4. Alejandro Badel & Ximena Peña, 2010. "Decomposing the GenderWage Gap with Sample Selection Adjustment: Evidence from Colombia," DOCUMENTOS CEDE 007725, UNIVERSIDAD DE LOS ANDES-CEDE.
  5. Luis Eduardo Arango & Carlos Esteban Posada & José Darío Uribe, "undated". "Cambios en la Estructura de los Salarios Urbanos en Colombia (1984-2000)," Borradores de Economia 297, Banco de la Republica de Colombia.
  6. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  7. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  8. Luis Fernando Gamboa & Blanca Zuluaga, 2011. "Is there a motherhood penalty? Decomposing the family wage gap in Colombia," Working Papers 220, ECINEQ, Society for the Study of Economic Inequality.
  9. Christian Manuel Posso, 2010. "Desigualdad salarial en Colombia 1984-2005: cambios en la composición del mercado laboral y retornos a la educación post-secundaria," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, December.
  10. Aysit Tansel, 1999. "Formal Versus Informal Sector Choice of Wage Earners and their Wages in Turkey," Working Papers 9927, Economic Research Forum, revised Sep 1999.
  11. Fiess, Norbert M. & Fugazza, Marco & Maloney, William F., 2010. "Informal self-employment and macroeconomic fluctuations," Journal of Development Economics, Elsevier, vol. 91(2), pages 211-226, March.
  12. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, February.
  13. repec:uwp:jhriss:v:8:y:1973:i:4:p:436-455 is not listed on IDEAS
  14. Bernal Raquel, 2009. "The Informal Labor Market in Colombia: identification and characterization," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, September.
  15. Ana María Iregui & Ligia Alba Melo & María Teresa Ramírez, "undated". "Formación e incrementos de salarios en Colombia: Un estudio microeconómico a partir de una encuesta a nivel de firma," Borradores de Economia 582, Banco de la Republica de Colombia.
  16. Luis Armando Galvis, 2012. "Informalidad laboral en las áreas urbanas de Colombia," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 009364, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  17. Pratap, Sangeeta & Quintin, Erwan, 2006. "Are labor markets segmented in developing countries? A semiparametric approach," European Economic Review, Elsevier, vol. 50(7), pages 1817-1841, October.
  18. José Ignacio Uribe & Carlos Humberto Ortiz & Gustavo Adolfo García, 2007. "La segmentación del mercado laboral colombiano en la década de los noventa," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 9(16), pages 189-221, January-J.
  19. Mazumdar, Dipak, 1976. "The Rural-Urban Wage Gap, Migration, and the Shadow Wage," Oxford Economic Papers, Oxford University Press, vol. 28(3), pages 406-425, November.
  20. Hugo Ñopo, 2012. "Gender earning gaps around the world: a study of 64 countries," International Journal of Manpower, Emerald Group Publishing, vol. 33(5), pages 464-513, August.
  21. Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," World Bank Economic Review, World Bank Group, vol. 13(2), pages 275-302, May.
  22. Aysit Tansel, 2001. "Wage Earners, Self Employed and Gender in the Informal Sector in Turkey," Working Papers 0102, Economic Research Forum, revised Jan 2001.
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