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Cuadernos de Administración

Print version ISSN 0120-3592

Abstract

URIBE GARCIA, José Ignacio; ORTIZ QUEVEDO, Carlos Humberto  and  GARCIA CRUZ, Gustavo Adolfo. Informal jobs and underemployment in Colombia: two sides of the same coin. Cuad. Adm. [online]. 2008, vol.21, n.37, pp.211-241. ISSN 0120-3592.

It is common to analyze deficiencies in employment quality by using the variables informal employment and underemployment. The former term is understood to capture the problem from the company perspective (demand) whereas the latter captures it from the worker perspective (supply). This paper examines how related those variables are to employment quality in the Colombian urban labor market. To do so, the determinants informal employment and underemployment are analyzed together using an econometric model that incorporates the correlation of the terms of error (bivariate probit model). A high correlation was found between the two variables and they, in turn, are related to low income levels, low educational levels, deficient work conditions, and low technological development sectors. This is the first paper on the Colombian labor market that analytically examines informal employment and underemployment together.

Keywords : Informal employment; underemployment; employment quality; bivariate probit; job supply; job demand.

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