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Persistence of informality in a developing country

  • Jhon James Mora

    ()

  • Juan Muro

    ()

Informality is a common phenomenon in developing countries and an unusual one in industrialized countries. The persistence of informal employment is indicative of the impossibility of moving out of this status for a certain period of time. Using pseudo panel data, empirical evidence is presented to show that this phenomenon occurs in a developing country like Colombia where education helps mitigate said persistent occurrence. The authors also present evidence that a minimum salary increase does not only result in increased informality, but also increases the persistence of informality. This kind of evidence can be used for discussing the persistence of informality in other developing countries.

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Paper provided by UNIVERSIDAD ICESI in its series BORRADORES DE ECONOMÍA Y FINANZAS with number 009593.

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Length: 16
Date of creation: 29 Feb 2012
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Handle: RePEc:col:000130:009593
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  1. Rocío Ribero, 2003. "Gender Dimensions Of Non-Formal Employment In Colombia," DOCUMENTOS CEDE 002762, UNIVERSIDAD DE LOS ANDES-CEDE.
  2. Jhon James Mora Rodríguez, 2003. "Las ganancias de tener un título: una aplicación al mercado laboral de Cali, 2000," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 59, pages 59-72, Julio-Dic.
  3. Juan Muro & Jhon James Mora, 2015. "Persistence of informality in a developing country," OBEGEF Working Papers 042, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.
  4. Luis Armando Galvis Aponte, 2002. "Integración regional de los mercados laborales en Colombia, 1984-2000," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 002898, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  5. José Ignacio Uribe García & Carlos Humberto Ortiz Quevedo & Juan Byron Correa Fonnegra, 2006. "¿Cómo deciden los individuos en el mercado laboral? Modelos y estimaciones para Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 64, pages 59-90, Enero-Jun.
  6. Luis Eduardo Arango & Paula Herrera & Carlos Esteban Posada, 2008. "El salario mínimo: aspectos generales sobre los casos de Colombia y otros países," Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 26(56), pages 204-263, Junio.
  7. Camilo Mondragón-Vélez & Ximena Peña & Daniel Wills, 2010. "Labor Market Rigidities and Informality in Colombia," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2010), pages 65-101, August.
  8. Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," COLOMBIAN ECONOMIC JOURNAL, UN - RCE - CID, April.
    • Jhon James Mora, 2003. "Sheepskin effects and screening in Colombia," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 95-108, December.
  9. Catalina Franco & Johanna Ramos, 2010. "Diferenciales Salariales en Colombia: Un Analisis para Trabajadores Rurales y Jovenes, 2002-2009," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 25(2), pages 91-131, Diciembre.
  10. Mª Dolores Collado, 1998. "Estimating binary choice models from cohort data," Investigaciones Economicas, Fundación SEPI, vol. 22(2), pages 259-276, May.
  11. Carmen Elisa Flórez, 2002. "THE FUNCTION OF THE URBAN INFORMAL SECTOR IN EMPLOYMENT: Evidence from Colombia 1984-2000," DOCUMENTOS CEDE 003595, UNIVERSIDAD DE LOS ANDES-CEDE.
  12. Jhon James Mora & Juan Muro, 2008. "Sheepskin effects by cohorts in Colombia," International Journal of Manpower, Emerald Group Publishing, vol. 29(2), pages 111-121, May.
  13. Moffitt, Robert, 1993. "Identification and estimation of dynamic models with a time series of repeated cross-sections," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 99-123, September.
  14. Girma, Sourafel, 2000. "A quasi-differencing approach to dynamic modelling from a time series of independent cross-sections," Journal of Econometrics, Elsevier, vol. 98(2), pages 365-383, October.
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