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Revisiting Informality: Evidence from Employment Characteristics and Job Satisfaction in Chile

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  • Lea Cassar

Abstract

We use data from a unique, nationally representative survey to investigate the relationship between job satisfaction and employment characteristics in Chile. Consistent with the dualistic models, job protection appears to be a positive determinant of job satisfaction rather than a cost to be avoided by engaging in informal activities. Further, we find self-employed workers to be penalized by the lack of valuable workplace facilities, such as decent toilets and clean water. However, being self-employed does not necessarily mean taking the “bad” jobs. We show that self-employed workers in Chile, like their counterparts in industrialized countries, derive procedural utility from being independent.

Suggested Citation

  • Lea Cassar, 2010. "Revisiting Informality: Evidence from Employment Characteristics and Job Satisfaction in Chile," OPHI Working Papers ophiwp041, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:ophiwp:ophiwp041
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    File URL: http://www3.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP041.pdf
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    References listed on IDEAS

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    5. Pablo Fajnzylber & William Maloney & Gabriel Montes Rojas, 2006. "Microenterprise Dynamics in Developing Countries: How Similar are They to Those in the Industrialized World? Evidence from Mexico," World Bank Economic Review, World Bank Group, vol. 20(3), pages 389-419.
    6. Tim Hinks, 2010. "Job Satisfaction and Employment Equity in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(2), pages 237-255, March.
    7. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
    8. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May.
    9. Chandra, Vandana & Khan, M Ali, 1993. "Foreign Investment in the Presence of an Informal Sector," Economica, London School of Economics and Political Science, vol. 60(237), pages 79-103, February.
    10. Diego Zavaleta, 2007. "The Ability to Go about without Shame: A Proposal for Internationally Comparable Indicators of Shame and Humiliation," OPHI Working Papers ophiwp003, Queen Elizabeth House, University of Oxford.
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    Cited by:

    1. Alejandra Villacis & Marcos Reis, 2015. "Analisis de la vulnerabilidad laboral y los determinantes del trabajo decente. El caso de Ecuador 2008-2011," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO, vol. 18(2), pages 157-185, December.
    2. Mireille Razafindrakoto & François Roubaud & Jean-Michel Wachsberger, 2012. "Santé, Inégalités et ruptures sociales à Antananarivo, Premiers résultats de l’enquête SIRS 2003," Working Papers DT/2012/10, DIAL (Développement, Institutions et Mondialisation).
    3. Rodrigo Montero & Diego Vásquez, 2015. "Job Satisfaction and Reference Wages: Evidence for a Developing Country," Journal of Happiness Studies, Springer, vol. 16(6), pages 1493-1507, December.
    4. Federico Huneeus & Oscar Landerretche & Esteban Puentes, 2012. "Multidimensional Measure of Job Quality: Persistence and Heterogeneity in a Developing Country," Working Papers wp357, University of Chile, Department of Economics.
    5. Anna Zudina, 2013. "Do informal workers make an underclass? An analysis of subjective social status," HSE Working papers WP BRP 24/SOC/2013, National Research University Higher School of Economics.
    6. Paula Carrasco, 2012. "El efecto de las condiciones de ingreso al mercado de trabajo en los jóvenes uruguayos. Un análisis basado en la protección de la seguridad social," Documentos de Trabajo (working papers) 12-13, Instituto de Economía - IECON.

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