Informality and overeducation in the labor market of a developing country
Herrera-Idárraga, Paula (Universitat de Barcelona)
López-Bazo, Enrique (Universitat de Barcelona)
Motellón Corral, Elisabet (Universitat de Barcelona)
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint:	Xarxa de Referència en Economia Aplicada (XREAP) 2012
Description:	42 p.
Abstract:	In this paper, we explore the connection between labor market segmentation in two sectors, a modern protected formal sector and a traditional- unprotected-informal sector, and overeducation in a developing country. Informality is thought to have negative consequences, primarily through poorer working conditions, lack of social security, as well as low levels of productivity throughout the economy. This paper considers an aspect that has not been previously addressed, namely the fact that informality might also affect the way workers match their actual education with that required performing their job. We use micro-data from Colombia to test the relationship between overeducation and informality. Empirical results suggest that, once the endogeneity of employment choice has been accounted for, formal male workers are less likely to be overeducated. Interestingly, the propensity of being overeducated among women does not seem to be closely related to the employment choice.
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Series:	Xarxa de Referència en Economia Aplicada (XREAP). Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series:	XREAP ; 2012-20
Document:	Working paper
Subject:	Mercat de treball ; Desenvolupament econòmic ; Economia submergida ; Segmentació del mercat ; Països en vies de desenvolupament ; Segmented labor markets ; Formal/Informal employment ; Human capital ; Economic development ; Labor market ; Informal sector (Economics) ; Market segmentation ; Developing countries
Published in:	XREAP2012-20

43 p, 306.5 KB

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Research literature > Studies