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Informal versus Formal : A Panel Data Analysis of Earnings Gaps in Madagascar
| Content Provider | Semantic Scholar |
|---|---|
| Copyright Year | 2012 |
| Abstract | In spite of its predominant economic weight in deve loping countries, little is known about informal se ctor income dynamics vis-à-vis the formal sector. Some w orks have been done in this field using household surveys, but they only consider some emerging Latin American countries (Argentina, Brazil, Colombia an d Mexico; Gong et al., 2004; Perry et al., 2007; Bargain and Kwenda, 2011) and more recentl y South Africa, Ghana and Tanzania for Africa (Falco et al., 2010) and Vietnam for Asia (Nguyen t al., 2011). As a matter of consequence, there is still no way to generalize th e (diverging) results to very poor part of the deve loping world. Taking advantage of the rich 1-2-3 Surveys dataset in Madagascar, in particular its four wave s panel data (2000, 2001, 2003 and 2004), we assess the mag nitude of various formal/informal sector earnings g aps while addressing heterogeneity issues at three diff rent levels: the worker, the job (wage employment vs. selfemployment) and the earnings distribution. The ques tion asked are the following: Is there an informal sector job earnings penalty? Do some informal sector jobs provide pecuniary premiums? Which ones? Do possible gaps vary along the earnings distribution? Standard e nings equations are estimated at the mean and a t various conditional quantiles of the earnings distribution. In particular, we estimate fixed effects quantile regressions to control for unobserved individual characteristics, focusing particularly on heterogeneity within both the formal and informal sector categories. Our results suggest that the informal sector earnings gap highly depen ds on the workers’ job status and on their relative position in the earnings distribution. Penalties may in some cases turn into premiums. By comparing our results with studie s n other developing countries, we draw conclusion s highlighting the Madagascar’s labour market specifi city. JEL Classification: J21, J23, J24, J31, O17. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://basepub.dauphine.fr/bitstream/handle/123456789/10601/CSAE2012-642.pdf?isAllowed=y&sequence=1 |
| Alternate Webpage(s) | https://aae.wisc.edu/mwiedc/papers/2013/nordman_christophe.pdf |
| Alternate Webpage(s) | http://horizon.documentation.ird.fr/exl-doc/pleins_textes/divers15-11/010059553.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | 3 ML Insulin Lispro 100 UNT/ML Pen Injector [Humalog] Align (company) Categories Disease regression Divergence (computer science) Estimated Exclusion Fixed effects model Forma (botanical taxonomic category below variety) Job Syndrome Job stream Labor (Childbirth) Lotus 1-2-3 Money Occupations Panel data Pen computing Phase I/II Trial Phase II/III Trial Repression, Psychology Rewards Sensitivity and specificity Silo (dataset) Social network Time-invariant system |
| Content Type | Text |
| Resource Type | Article |
