Is the wage curve formal or informal? Evidence for Colombia

Ramos, Raúl; Duque, Juan Carlos; Suriñach, Jordi

doi:10.1016/j.econlet.2010.08.004

Cited by 22 publications

(19 citation statements)

References 8 publications

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“…Following Maloney (), Jutting and De Laiglesia () and Ramos et al. (), we define formal workers as those who are registered with the social security administration. During the sample period that we investigate, approximately 28 per cent of wage earners in Turkey did not have the protection of the mandatory social security system.…”

Section: Introductionmentioning

confidence: 99%

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How different are the wage curves for formal and informal workers? Evidence from Turkey

Baltagi

Başkaya

Hulagu

2013

Papers in Regional Science

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 6836 September 2012 ABSTRACT How Different Are the Wage Curves for Formal and Informal Workers? Evidence from TurkeyThis paper presents wage curves for formal and informal workers using a rich individual level data for Turkey over the period [2005][2006][2007][2008][2009]. The wage curve is an empirical regularity describing a negative relationship between regional unemployment rates and individuals' real wages. While this relationship has been well documented for a number of countries including Turkey, less attention has focused on how this relationship differs for informal versus formal employment. This is of utmost importance for less developed countries where informal employment plays a significant role in the economy. Using the Turkish Household Labor Force Survey observed over 26 NUTS-2 regions, we find that real hourly wages of informal workers in Turkey are more sensitive to variations in regional unemployment rates than wages of formal workers. This is true for all workers as well as for different gender and age groups. JEL Classification:C26, J30, J60, O17

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Section: Introductionmentioning

confidence: 99%

“…See Berg and Contreras () for an estimation of the informal wage curve for Chile, and Ramos et al. () for Colombia.…”

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confidence: 99%

How different are the wage curves for formal and informal workers? Evidence from Turkey

Baltagi

Başkaya

Hulagu

2013

Papers in Regional Science

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“…After excluding the selfemployed or paid family workers, the unemployed, inactive and missing observations, we are left with over 739,490 observations. The literature on the wage curve in other South American countries is rather limited and include papers on Argentina (Galiani, 1999), Chile (Berg and Contreras, 2004;Garcia and Granados, 2005), Colombia (Arango et al, 2010;Ramos et al, 2009) and Uruguay (Bucheli and González, 2012). Almost all of these studies rely on microdata and report unemployment elasticities around -0.1.…”

Section: Introductionmentioning

confidence: 99%

The Brazilian wage curve: new evidence from the National Household Survey

2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 8468 September 2014 ABSTRACTThe Brazilian Wage Curve: New Evidence from the National Household Survey This paper reconsiders the Brazilian wage curve using individual data from the National Household Survey at 27 Federative Units over the period 2002 -2009. We find evidence in favor of the Brazilian wage curve with an unemployment elasticity of -0.08 when the lagged unemployment rate is used as an instrument for current unemployment rate. We also find that males in Brazil are significantly more responsive to local unemployment rates (-0.13) than their female counterparts. In fact, we find that the unemployment elasticity for women is statistically insignificant. Applying gender specific unemployment rates, the elasticity for men decreases to -0.09, while the elasticity for women remains statistically insignificant. This paper also finds that the estimates for Brazilian wage curve are completely different for the case of formal and informal workers. JEL Classification:C26, J30, J60

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“…() found a wage curve for all workers, although when the information was broken down between formal and informal workers, Ramos et al . (, p.6) found that ‘only wages of informal workers react to local labour market conditions’; however, the wages of formal workers, who are the focus of our paper, do not. The replies to the survey indicate that the wages of new hires for all occupational groups are based on a predefined internal wage structure.…”

Section: Introductionmentioning

confidence: 99%

Wage‐setting Decisions on Newly Hired Employees: Survey Evidence from Colombian Firms

2013

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This paper uses a survey on wage formation applied to 1305 Colombian firms to study wage-setting decisions of newly hired employees. The survey indicates that wages of the newly hired are based mainly on a predefined wage structure. This may help to explain, in part, the presence of downward nominal wage rigidities in the Colombian formal labour market, since firms are unwilling to differentiate the pay of new hires from the wages of existing workers. Using multinomial logit models, we find that firm size and the share of temporary workers increase the relative risk of using a predefined internal structure over bargaining between employee and employer when setting the wages of the newly hired employees.

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Is the wage curve formal or informal? Evidence for Colombia

Cited by 22 publications

References 8 publications

How different are the wage curves for formal and informal workers? Evidence from Turkey

How different are the wage curves for formal and informal workers? Evidence from Turkey

The Brazilian wage curve: new evidence from the National Household Survey

Wage‐setting Decisions on Newly Hired Employees: Survey Evidence from Colombian Firms

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