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Title: Regional wage gaps, education and informality in an emerging country: the case of Colombia
Author: Herrera Idárraga, Paula
López Bazo, Enrique
Motellón Corral, Elisabet  
Others: Pontificia Universidad Javeriana
Universitat de Barcelona
Universitat Oberta de Catalunya (UOC)
Keywords: wage differentials
quantile-based decompositions
informal jobs
economic development
Issue Date: 5-Jul-2016
Publisher: Spatial Economic Analysis
Citation: Herrera-Idárraga, P., López-Bazo, E. & Motellón, E. (2016). Regional wage gaps, education and informality in an emerging country: the case of Colombia. Spatial Economic Analysis, 11(4), 432-456. doi: 10.1080/17421772.2016.1190462
Project identifier: info:eu-repo/grantAgreement/ECO2011-30260-C03-03
info:eu-repo/grantAgreement/FI-DGR 2012
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Abstract: This paper uses Colombian micro-data to analyze the role of education and informality in regional wage differentials. The hypothesis is that apart from differences in the endowment of human capital, regional heterogeneity in the incidence of informality is another important source of regional wage inequality in emerging countries. This is confirmed by the evidence from Colombia, which also reveals remarkable spatial heterogeneity in the wage return to individuals' characteristics. Regional heterogeneity in returns to education is especially intense in the upper part of the wage distribution. In turn, heterogeneity in the informal pay penalty is more relevant at the bottom.
Language: English
ISSN: 1742-1772MIAR

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