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Informality and Overeducation in the Labor Market of a Developing Country
Herrera-Idárraga, Paula; López-Bazo, Enrique; Motellón Corral, Elisabet
In this paper, we explore the connection between labor market segmentation in two sectors, a modern protected formal sector and a traditionalunprotected-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 sector choice.
Mercat de treball
Recursos humans
Igualtat retributiva
Desenvolupament econòmic
Labor market
Human capital
Pay equity
Economic development
cc-by-nc-nd, (c) Herrera-Idárraga et al., 2013
http://creativecommons.org/licenses/by-nc-nd/3.0/
Documento de trabajo
Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
         

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