AN EMPIRICAL EXPLORATION OF GEOGRAPHIC HETEROGENEITIES IN LABOR MARKETS INFORMALITY AND MINIMUM WAGE EFFECTS
Dual labor markets, defined by the existence or not of a formal labor contract, are a widespread feature in developing countries. Part of this duality results from marked asymmetries between relevant groups and categories, given one-size-fits-all regulation. This article proposes an exploration o...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universidad Nacional de Misiones
2021-01-01
|
| Series: | Visión de Futuro |
| Subjects: | |
| Online Access: | https://visiondefuturo.fce.unam.edu.ar/index.php/visiondefuturo/article/view/490/345 |
| Summary: | Dual labor markets, defined by the existence or not of a formal labor contract, are a
widespread feature in developing countries. Part of this duality results from marked asymmetries
between relevant groups and categories, given one-size-fits-all regulation. This article proposes
an exploration of the relationship between informality and the minimum wage as a potential source
of variation for the identification heterogeneous effects between regions in Argentina. The results
obtained support the existence of heterogeneities in policy effects between the central and
peripheral regions. The distribution of wages and the level of compliance with the associated
minimum wage regulations are the main variables of interest; both exhibit differential effects
across regions, stronger northern agglomerations. These are robust to various specifications and
controls associated with interregional differences (educational levels, size of companies, sectoral
differences, among others). Results have important implications given persistent regional
backwardness, and heterogeneities in terms of the workings of both markets and related policies. |
|---|---|
| ISSN: | 1668-8708 1669-7634 |