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| Author: | Pratap, S. Quintin, E. |
| Title: | Are labor markets segmented in developing countries? A semiparametric approach |
| Journal: | European Economic Review
2006 : OCT, VOL. 50:7, p. 1817-1841 |
| Index terms: | labour markets segmentation employment pay informal economy developing countries Argentina South America |
| Freeterms: | semiparametric methods |
| Language: | eng |
| Abstract: | This study tests the hypothesis that observably similar workers earn higher wages in the formal sector than in the informal (here as: inf.) sector in developing nations. Based on data from Argentina's household survey and various definitions of inf. employment, it is found that on average, formal wages are higher than inf. wages. However, this approach suffers from several econometric problems, which are addressed here with semiparametric methods. The resulting formal premium estimates prove either small and insignificant, or negative. Neither there is found significant differences in measures of job satisfaction btw. the two sectors. |
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