Uncovering the wage differential between formal and informal jobs: analysis from the Colombian Caribbean region

dc.creatorCantillo, Tatiana
dc.creatorCantillo, Víctor
dc.creatorGarcia, Lucy
dc.creatorCantillo-Garcia, Víctor
dc.date2022-05-23T16:30:18Z
dc.date2022-05-23T16:30:18Z
dc.date2022-01-21
dc.date.accessioned2023-07-21T16:44:13Z
dc.date.available2023-07-21T16:44:13Z
dc.identifier2196-436X
dc.identifierhttp://hdl.handle.net/11651/5203
dc.identifierEn: Latin American Economic Review, volumen 31, número 1, enero de 2022
dc.identifierhttps://doi.org/10.47872/laer.v31.24
dc.identifierhttps://ojs.latinaer.org/laer/article/view/24
dc.identifier.urihttps://repositorioslatinoamericanos.uchile.cl/handle/2250/7735621
dc.descriptionLabour informality, Colombian Caribbean region, income, hidden economy
dc.descriptionThe paper aims to assess the wage differential that would induce workers to switch between informal and formal sectors, analysing the informal labour market in the Colombian Caribbean region. Relying on the theory of equalising differences, we uncover which workers perceive the highest utility from holding a formal job. Our research sheds light on how workers derive utility from formal and informal job sectors’ benefits and to which extent informal workers are willing to accept a lower (or higher) wage to get a job in the formal sector. We also analyse the factors increasing the likelihood to seek employment in the formal sector. Results suggest that, on average, informal workers in the study region are willing to switch to a formal job only if they are offered a salary higher than their current income but are also willing to accept a salary slightly lower than the legal minimum wage in the formal sector. Finally, perceptions of benefits from formal and informal jobs vary with the socio-economic characteristics of individuals, especially by education level and previous work experience.
dc.formatapplication/PDF
dc.formatapplication/pdf
dc.languageeng
dc.publisherCentro de Investigación y Docencia Económicas
dc.relationLatin American Economic Review, volumen 31, número 1, enero de 2022
dc.rightsLa revista Latin American Economic Review autoriza a poner en acceso abierto de conformidad con las licencias CREATIVE COMMONS, aprobadas por el Consejo Académico Administrativo del CIDE, las cuales establecen los parámetros de difusión de las obras con fines no comerciales. Lo anterior sin perjuicio de los derechos morales que corresponden a los autores.
dc.rightsCreative Commons Reconocimiento-NoComercial-SinObraDerivada 4.0 International CC BY-NC-ND
dc.source2196-436X
dc.titleUncovering the wage differential between formal and informal jobs: analysis from the Colombian Caribbean region
dc.typeArtículo


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