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

  • 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://www.urosario.edu.co/economia/documentos/pdf/dt138/
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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
Date of revision:
Handle: RePEc:col:000092:010990
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  1. Alejandro Badel & Ximena Peña, 2010. "Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 25(2), pages 169-191, Diciembre.
  2. Nopo, Hugo, 2004. "Matching as a Tool to Decompose Wage Gaps," IZA Discussion Papers 981, Institute for the Study of Labor (IZA).
  3. Luis Fernando Gamboa & Blanca Zuluaga, 2011. "Is there a motherhood penalty? decomposing the family wage gap in Colombia," DOCUMENTOS DE TRABAJO 010288, UNIVERSIDAD DEL ROSARIO.
  4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  5. Alejandro Hoyos & Ximena Peña & Hugo R. Ñopo, 2010. "The Persistent Gender Earnings Gap in Colombia, 1994-2006," IDB Publications (Working Papers) 6791, Inter-American Development Bank.
  6. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  7. Pradhan, M.P. & van Soest, A.H.O., 1995. "Formal and informal sector unemployment in urban areas of Bolivia," Other publications TiSEM 4b6b27c8-e099-40fd-bee4-3, Tilburg University, School of Economics and Management.
  8. Luis Eduardo Arango & Carlos Esteban Posada & José Darío Uribe, . "Cambios en la Estructura de los Salarios Urbanos en Colombia (1984-2000)," Borradores de Economia 297, Banco de la Republica de Colombia.
  9. 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.
  10. 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.
  11. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, 07.
  12. 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.
  13. Bernal Raquel, 2009. "The Informal Labor Market in Colombia: identification and characterization," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
  14. Ana María Iregui & Ligia Alba Melo & María Teresa Ramírez, . "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.
  15. Luis Armando Galvis A., 2012. "Informalidad laboral en las áreas urbanas de Colombia," COYUNTURA ECONÓMICA, FEDESARROLLO.
  16. 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.
  17. Mazumdar, Dipak, 1976. "The Rural-Urban Wage Gap, Migration, and the Shadow Wage," Oxford Economic Papers, Oxford University Press, vol. 28(3), pages 406-25, November.
  18. Christian Manuel Posso Suárez, . "Desigualdad salarial en Colombia 1984-2005: cambios en la composición del mercado laboral y retornos a la educación post-secundaria," Borradores de Economia 529, Banco de la Republica de Colombia.
  19. Hugo Ñopo & Nancy Daza & Johanna Ramos, 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, March.
  20. Aysit Tansel, 2001. "Wage Earners, Self Employed and Gender in the Informal Sector in Turkey," Working Papers 0102, Economic Research Forum, revised Jan 2001.
  21. 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.
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