Use this identifier to quote or link this document: http://hdl.handle.net/2072/203414

Informality and overeducation in the labor market of a developing country
Herrera-Idárraga, Paula; López-Bazo, Enrique; Motellón Corral, Elisabet
Xarxa de Referència en Economia Aplicada (XREAP)
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.
2012-11-06
33 - Economia
331 - Treball. Relacions laborals. Ocupació. Organització del treball
Mercat de treball
Desenvolupament econòmic
Economia submergida
Segmentació del mercat
Països en vies de desenvolupament
Labor market
Economic development
Informal sector (Economics)
Market segmentation
Developing countries
L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by/3.0/es/
42 p.
Working Paper
Xarxa de Referència en Economia Aplicada (XREAP)
XREAP;2012-20
         

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