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Is There an Informal Employment Wage Premium? Evidence from Tajikistan

  • Arabsheibani, Reza

    ()

    (Swansea University)

  • Staneva, Anita V.

    ()

    (Swansea University)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6727.

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Length: 28 pages
Date of creation: Jul 2012
Date of revision:
Publication status: published in: IZA Journal of Labor & Development, 2014, 3:1
Handle: RePEc:iza:izadps:dp6727
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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.
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  14. 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.
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