Lecturas de Economía
Print version ISSN 0120-2596
URIBE, José Ignacio; ORTIZ, Carlos Humberto and CORREA, Juan Byron. How Do Individuals Decide in the Labor Market? Models and Estimations for Colombia. Lect. Econ. [online]. 2006, n.64, pp. 59-89. ISSN 0120-2596.
Neoclassical models of choice are estimated for the Colombian labor market. In a first approach, it is assumed that labor market choices are sequential: first, agents decide whether they participate or not; if the do, they choose to be employed or continue to search; if they decide to be employed, job quality is determined: formal or informal. Subsequently, estimations are made as if labor decisions were simultaneous. There is evidence that shows that the latter seems to be more adequate for the Colombian labor market. Education is estimated as the more important labor characteristic for improving social welfare.
Keywords : Labor supply; human capital; job seeking.