SciELO - Scientific Electronic Library Online

 
vol.36 special issue 72Income inequality in Colombia (1938-1988): A new data setThe tax burden on labor and capital income in Colombia: The case of the income tax and the VAT author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand

Journal

Article

Indicators

Related links

  • On index processCited by Google
  • Have no similar articlesSimilars in SciELO
  • On index processSimilars in Google

Share


Cuadernos de Economía

Print version ISSN 0121-4772

Abstract

ARIZA, John  and  MONTES-ROJAS, Gabriel. Labour income inequality and the informal sector in Colombian cities. Cuad. Econ. [online]. 2017, vol.36, n.spe72, pp.77-98. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v36n72.65820.

Labour markets in developing countries are crucial to determine income inequality. In this paper, we use a panel data approach to study the effect of the informal sector on labour income inequality for thirteen cities in Colombia from 2002-2015. We use the rate of underemployment, the average duration of unemployment and the intensity of forced migration from armed conflicts as instruments for the urban informal sector. Results suggest that the informal sector has a positive and statistically significant effect on labour income inequality, which implies that an increase by one percentage point in the informal sector increases the Gini coefficient of labour income by about 0.07.

JEL: J31, J46, J81, O54.

Keywords : Income inequality; the informal sector; Latin America; occupations.

        · abstract in Spanish | French | Portuguese     · text in English     · English ( pdf )