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dc.creatorArango-Thomas, Luis Eduardo
dc.creatorFlórez, Luz Adriana
dc.creatorGuerrero, Laura D.
dc.description.abstractWe present evidence of the minimum wage effects on labour informality rates in Colombia. Our identification strategy consists of dividing the working population into sixteen groups depending on their age, gender and educational level to observe how the variations in the minimum wage with respect to the 70th percentile of the distribution of salaries corresponding to the demographic group of each individual, affects the probability of having an informal occupation. The results suggest that the higher the value of the minimum wage ratio the higher will be the probability of being informal. An increase of one percentage point (pp) in the ratio of the minimum wage increases the probability of having an informal job by 0.21 pp. This effect may be greater in cities with higher informality rates and consequently with lower labour productivity of less educated workers. Our results also present evidence of non-linear effects, which suggests that workers whose labour productivity is less than the minimum wage are more likely to have informal jobs.
dc.format.extent26 páginas
dc.relation.ispartofDocumentos de Trabajo
dc.rights.accessRightsOpen Access
dc.titleMinimum wage effects on informality across demographic groups in Colombia
dc.typeWorking paper
dc.subject.jelJ21 - Labor Force and Employment, Size, and Structure
dc.subject.jelJ30 - Wages, Compensation, and Labor Costs: General
dc.subject.jelJ46 - Informal Labor Markets
dc.subject.jelO17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
dc.subject.keywordMinimum wage
dc.subject.keywordLabour informality
dc.subject.lembEconomía informal -- Colombia
dc.subject.lembMercado laboral -- Colombia
dc.subject.lembSalario mínimo -- Colombia
dc.subject.lembSalario mínimo -- Diferencias regionales -- Colombia
dc.type.spaDocumentos de Trabajo
dc.rights.spaAcceso abierto
dc.rights.ccAtribucion-NoComercial-CompartirIgual CC BY-NC-SA 4.0
dc.type.hasversionPublished Version
dc.contributor.institucionBanco de la República - Colombia
dc.relation.numberNo. 81

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