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Minimum wage effects on informality across demographic groups in Colombia

dc.audienceResearcherseng
dc.audienceStudentseng
dc.audienceTeacherseng
dc.contributor.institucionBanco de la República - Colombiaspa
dc.coverage.ciudadBogotáspa
dc.creatorArango-Thomas, Luis Eduardospa
dc.creatorFlórez, Luz Adrianaspa
dc.creatorGuerrero, Laura D.spa
dc.date.accessioned2021-05-26T21:12:55Zspa
dc.date.available2021-05-26T21:12:55Zspa
dc.date.created2021-05-26spa
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.eng
dc.format.extent26 páginasspa
dc.format.mimetypePDFspa
dc.identifier.urihttps://repositorio.redinvestigadores.org/handle/Riec/102spa
dc.language.isoengeng
dc.relation.ispartofDocumentos de Trabajospa
dc.relation.numberNo. 81spa
dc.relation.repechttps://ideas.repec.org/p/rie/riecdt/81.htmlspa
dc.relation.urihttps://repositorio.banrep.gov.co/bitstream/handle/20.500.12134/9810/be_1104.pdfspa
dc.rights.accessRightsOpen Accesseng
dc.rights.ccAtribucion-NoComercial-CompartirIgual CC BY-NC-SA 4.0spa
dc.rights.spaAcceso abiertospa
dc.rights.urihttps://creativecommons.org/licenses/by-nc-sa/4.0/eng
dc.subject.jelJ21 - Labor Force and Employment, Size, and Structureeng
dc.subject.jelJ30 - Wages, Compensation, and Labor Costs: Generaleng
dc.subject.jelJ46 - Informal Labor Marketseng
dc.subject.jelO17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangementseng
dc.subject.keywordMinimum wageeng
dc.subject.keywordLabour informalityeng
dc.subject.keywordHeterogeneityeng
dc.subject.lembEconomía informal -- Colombiaspa
dc.subject.lembMercado laboral -- Colombiaspa
dc.subject.lembSalario mínimo -- Colombiaspa
dc.subject.lembSalario mínimo -- Diferencias regionales -- Colombiaspa
dc.subject.temaInformalidadspa
dc.titleMinimum wage effects on informality across demographic groups in Colombiaeng
dc.typeWorking papereng
dc.type.hasversionPublished Versioneng
dc.type.spaDocumentos de Trabajospa

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