Author:
Ariza John,Montes-Rojas Gabriel
Abstract
Labour markets in developing countries are crucial to determine income inequality. In this paper, we use a panel data approach to study the effect of the informal sector on labour income inequality for thirteen cities in Colombia from 2002-2015. We use the rate of underemployment, the average duration of unemployment and the intensity of forced migration from armed conflicts as instruments for the urban informal sector. Results suggest that the informal sector has a positive and statistically significant effect on labour income inequality, which implies that an increase by one percentage point in the informal sector increases the Gini coefficient of labour income by about 0.07.
Publisher
Universidad Nacional de Colombia
Subject
General Economics, Econometrics and Finance,Social Sciences (miscellaneous),Arts and Humanities (miscellaneous)
Reference20 articles.
1. Amarante, V., & Arim, R. (2015a). Desigualdad e informalidad. Un análisis de cinco experiencias latinoamericanas. Santiago de Chile: CEPAL, Ministerio de Asuntos Exteriores de Noruega.
2. Amarante, V., & Arim, R. (2015b). Desigualdad de las remuneraciones e informalidad: breve revisión de literatura y marco analítico. In V. Amarante, & R. Arim (Eds.), Desigualdad e informalidad. Un análisis de cinco experiencias latinoamericanas (pp. 19-35). Santiago de Chile: CEPAL, Ministerio de Asuntos Exteriores de Noruega.
3. Arango, L., Posada, C., & Uribe, J. (2006). Cambios en la estructura de los salarios urbanos en Colombia, 1984-2000. Lecturas de Economía, 64, 187-194.
4. Berg, J. (2010). Laws or luck? Understanding rising formality in Brazil in the 2000s. Munich Personal RPEC Archive MPRA.
5. Binelli, C. (2016). Wage inequality and informality: Evidence from México. IZA Journal of Labor & Development, 5(5), 1-18. doi 10.1186/ s40175-016-0050-1.
Cited by
8 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献