nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2014‒12‒03
five papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Informality and employment quality in Argentina : country case study on labour market segmentation By Bertranou, Fabio; Casanova, Luis; Jiménez, Maribel; Jiménez, Mónica
  2. Heterogeneity in the Egyptian informal labour market: choice or obligation? By Rawaa Harati
  3. 30,000 Minimum Wages: The Economic Effects of Collective Bargaining Extensions By Martins, Pedro S.
  4. The Brazilian Wage Curve: New Evidence from the National Household Survey By Baltagi, Badi H.; Rokicki, Bartlomiej; Barreiro de Souza, Kênia
  5. Evaluación de impacto en la inserción laboral de los beneficiarios de los cursos sectoriales de formación profesional By Castillo, Victoria; Ohaco, Moira; Schleser, Diego

  1. By: Bertranou, Fabio; Casanova, Luis; Jiménez, Maribel; Jiménez, Mónica
    Abstract: This working paper examines employment quality and labour market segmentation in Argentina. The labour market in the country is marked by heterogeneity; the rate of informal employment is high, though it diminished significantly during the 2003-2011 period.
    Keywords: labour market segmentation, informal economy, informal workers, employment security, Argentina, segmentation du marché du travail, économie informelle, travailleurs informels, sécurité de l'emploi, Argentine, segmentación del mercado de trabajo, economía informal, trabajadores informales, seguridad en el empleo, Argentina
    Date: 2014
  2. By: Rawaa Harati (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: This paper provides historical and empirical arguments that can explain the development of the Egyptian informal sector. After recalling the various approaches proposed in the literatures, it identifies the configuration that overrides the Egyptian labor market by allowing for the heterogeneity of informal jobs and therefore the existence of different segments within the informal sector using a mixture model. It concludes that the Egyptian informal labor market in 2006 was composed of two segments with a distinct wage equations. This may point to the existence of barriers to entry to each sector, e.g. fixed cost related to social stigma which prevent people from working in the sector which offers them the highest expected wage.
    Keywords: Informal market; development economics; finite mixture model; Egypt; segmentation; selection bias
    Date: 2013–03
  3. By: Martins, Pedro S. (Queen Mary, University of London)
    Abstract: Several countries extend collective bargaining agreements to entire sectors, therefore binding non-subscriber workers and employers. These extensions may address coordination issues but may also distort competition by imposing sector-specific minimum wages and other work conditions that are not appropriate for many firms. In this paper, we analyse the impact of such extensions along several margins drawing on firm-level monthly data for Portugal, a country where extensions have been widespread until recently. We find that both formal employment and wage bills in the relevant sector fall, on average, by 2% – and by 25% more across small firms – over the four months after an extension is issued. These results are driven by both reduced hirings and increased firm closures. On the other hand, informal work, not subject to labour law or extensions, tends to increase. Our findings are robust to several checks, including a falsification exercise based on extensions that were announced but not implemented.
    Keywords: collective agreements, worker flows, wage rigidity
    JEL: J31 J52 J23
    Date: 2014–10
  4. By: Baltagi, Badi H. (Syracuse University); Rokicki, Bartlomiej (Warsaw University); Barreiro de Souza, Kênia (CEDEPLAR/UFMG)
    Abstract: 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.
    Keywords: wage curve, fixed effects, regional labor markets, household surveys, informal workers
    JEL: C26 J30 J60
    Date: 2014–09
  5. By: Castillo, Victoria; Ohaco, Moira; Schleser, Diego
    Abstract: Esta nueva publicación de la Serie Documentos de Trabajo tiene como objetivo evaluar el impacto que los cursos sectoriales de formación profesional, realizados durante 2010, han tenido en la mejora de la empleabilidad de las personas. En particular, se analiza la contribución de esta política al incremento de la probabilidad de inserción de las personas desempleadas o con trabajo informal en el empleo asalariado registrado. Mediante una estrategia metodológica cuasiexperimental, y con la implementación de técnicas estadísticas, se utiliza como insumo del estudio el sistema de información del Ministerio de Trabajo, Empleo y Seguridad Social de Argentina, construido con los registros administrativos del Sistema Integrado Previsional Argentino (SIPA) y de la Red de Oficinas de Empleo. Para la conformación del grupo de control se utiliza un Propensity Score Matching (PSM) y, para la estimación de la probabilidad de inserción, un modelo Probit. Los resultados de los modelos estadísticos realizados muestran que la edad, el género, el nivel educativo, la experiencia laboral formal o informal y la realización de un curso de formación profesional constituyen características relevantes al momento de acceder a un empleo formal. Además, se verifica el impacto de la política de formación profesional en la probabilidad de acceder al empleo asalariado registrado.
    Keywords: vocational training, training course, impact evaluation, reemployment, Argentina, formation professionnelle, cours de formation, évaluation de l'impact, réemploi, Argentine, formación profesional, curso de formación, evaluación del impacto, recontratación, Argentina
    Date: 2014

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