Earnings determinants for own-account workers in the urban informal economy: The case of Bogotá, Colombia
This paper explores earnings determinants for own-account workers in the urban informal economy of Bogotá, Colombia. Descriptive statistics show differences in individual, household and business characteristics when gender and business location are compared. Own-account workers operating in the street, on average, earn less than those in other locations and are the most dissatisfied with their jobs. For all regressions, the dependent variable is the log of hourly earnings. Under the human capital earnings model, women earn statistically significantly less than men for every hour worked. Using an earnings model that includes human, market and social capital factors, there is no gender gap. Education and being married have statistically significant positive returns for men and women. When the data are segmented by gender, age (as a proxy for experience) has no effect on men´s hourly earnings. For women, age and the length of time in business have a statistically significant positive effect on earnings. The number of household members has a significantly negative effect on women´s hourly earnings, but does not affect men´s earnings. Results also show that women in the service sector and men in the sales sector earn significantly less compared to all other sectors.
|Date of creation:||23 Mar 2010|
|Date of revision:|
|Contact details of provider:|| |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maloney, William, 2003.
Policy Research Working Paper Series
2965, The World Bank.
- Patrick J. McEwan, 1995. "Heterogeneidad en el sector informal urbano de Colombia," COYUNTURA SOCIAL 013220, FEDESARROLLO.
- Kurt Annen, 2005. "Economic Returns to Social Capital in the Urban Informal Sector in Developing Countries: Micro Evidence from Small Textile Producers in Bolivia," Development and Comp Systems 0511011, EconWPA.
- Carmen Elisa Flórez, 2002. "The Function Of The Urban Informal Sector In Employment," DOCUMENTOS CEDE 006883, UNIVERSIDAD DE LOS ANDES-CEDE.
- Edgar L. Feige, 2004. "How Big IS the Irregular Economy?," Macroeconomics 0404005, EconWPA.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Schultz, Theodore W, 1980. "Nobel Lecture: The Economics of Being Poor," Journal of Political Economy, University of Chicago Press, vol. 88(4), pages 639-51, August.
- Klarita Gërxhani, 2004. "The Informal Sector in Developed and Less Developed Countries: A Literature Survey," Public Choice, Springer, vol. 120(3_4), pages 267-300, 09.
- Gronau, Reuben, 1988.
"Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg,"
Journal of Labor Economics,
University of Chicago Press, vol. 6(3), pages 277-301, July.
- Reuben Gronau, 1982. "Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg," NBER Working Papers 1002, National Bureau of Economic Research, Inc.
- 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.
- Rocío Ribero, 2003. "Gender Dimensions Of Non-Formal Employment In Colombia," DOCUMENTOS CEDE 002762, UNIVERSIDAD DE LOS ANDES-CEDE.
- Honig, Benson, 1998. "What determines success? examining the human, financial, and social capital of jamaican microentrepreneurs," Journal of Business Venturing, Elsevier, vol. 13(5), pages 371-394, September.
- Hugo López, 1990. "Inestabilidad laboral y ciclo de vida en Colombia," COYUNTURA ECONÓMICA, FEDESARROLLO, vol. 20(1), pages 173-191, March.
When requesting a correction, please mention this item's handle: RePEc:col:000137:006842. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexander Cotte Poveda)
If references are entirely missing, you can add them using this form.