Is There an Informal Employment Wage Premium? Evidence from Tajikistan
This paper defines informal sector employment and decomposes the difference in earnings distributions between formal and informal sector employees in Tajikistan for 2007. Using the quantile regression decomposition technique proposed by Machado and Mata (2005), we find a significant informal employment wage premium across the whole earnings distribution. This contrast with earlier studies and casts doubt on the recent literature showing that the informal sector is poorly rewarded. It seems to be the case that the informal employment in Tajikistan is the main source of income.
|Date of creation:||Jul 2012|
|Date of revision:|
|Publication status:||published in: IZA Journal of Labor & Development, 2014, 3:1|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
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.:
- 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.
- Alejandro Badel & Ximena Peña, 2010. "Decomposing the GenderWage Gap with Sample Selection Adjustment: Evidence from Colombia," DOCUMENTOS CEDE 007725, UNIVERSIDAD DE LOS ANDES-CEDE.
- Alejandro Badel & Ximena Peña, 2010. "Decomposing the gender wage gap with sample selection adjustment: evidence from Colombia," Working Papers 2010-045, Federal Reserve Bank of St. Louis.
- Ilhom Abdulloev & Ira N. Gang & John Landon-Lane, 2011.
"Migration as a Substitute for Informal Activities: Evidence from Tajikistan,"
311, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Ilhom Abdulloev & Ira N. Gang & John Landon-Lane, 2011. "Migration as a Substitute for Informal Activities: Evidence from Tajikistan," CReAM Discussion Paper Series 1124, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Abdulloev, Ilhom & Gang, Ira N. & Landon-Lane, John, 2011. "Migration as a Substitute for Informal Activities: Evidence from Tajikistan," IZA Discussion Papers 6236, Institute for the Study of Labor (IZA).
- Michael J. Pisani & José A. Pagán, 2004. "Sectoral Selection and Informality: a Nicaraguan Case Study," Review of Development Economics, Wiley Blackwell, vol. 8(4), pages 541-556, November.
- Kolev, Alexandre, 1998. "Labour Supply in the Informal Economy in Russia during Transition," CEPR Discussion Papers 2024, C.E.P.R. Discussion Papers.
- Leonardo Gasparini & Leopoldo Tornarolli, 2007.
"Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata,"
CEDLAS, Working Papers
0046, CEDLAS, Universidad Nacional de La Plata.
- Gasparini Leonardo & Leonardo Tornaroli, 2009. "Labor Informality in Latin America and the Caribbean: Patterns and Trends from Household Survey Microdata," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
- David Neumark, 1987.
"Employers' discriminatory behavior and the estimation of wage discrimination,"
Special Studies Papers
227, Board of Governors of the Federal Reserve System (U.S.).
- David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
- Douglas Marcouiller, S.J. & Veronica Ruiz de Castilla & Christopher Woodruff, 1995.
"Formal Measures of the Informal Sector Wage Gap in Mexico, El Salvador, and Peru,"
Boston College Working Papers in Economics
294., Boston College Department of Economics.
- Marcouiller, Douglas & Ruiz de Castilla, Veronica & Woodruff, Christopher, 1997. "Formal Measures of the Informal-Sector Wage Gap in Mexico, El Salvador, and Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 367-92, January.
- Pradhan, M.P. & van Soest, A.H.O., 1997.
"Household labor supply in urban areas of Bolivia,"
Other publications TiSEM
dba82438-cf2e-4d92-975b-a, Tilburg University, School of Economics and Management.
- Rose, Richard & McAllister, Ian, 1996. "Is Money the Measure of Welfare in Russia?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(1), pages 75-90, March.
- Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
- Mazumdar, Dipak, 1983. "Segmented Labor Markets in LDCs," American Economic Review, American Economic Association, vol. 73(2), pages 254-59, May.
- Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
- Henley, Andrew & Arabsheibani, G. Reza & Carneiro, Francisco G., 2009. "On Defining and Measuring the Informal Sector: Evidence from Brazil," World Development, Elsevier, vol. 37(5), pages 992-1003, May.
- Kröger, Antje & Meier, Kristina, 2011. "Employment and the Financial Crisis: Evidence from Tajikistan," Proceedings of the German Development Economics Conference, Berlin 2011 50, Verein für Socialpolitik, Research Committee Development Economics.
- 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.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6727. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.