Do Workers in Chile Choose Informal Employment? A Dynamic Analysis of Sector Choice

Packard, Truman G.

World Bank, Washington, DC

关键词: AGGREGATE DEMAND;    AGGREGATE INCOME;    BONUSES;    DISABILITY;    DISCUSSIONS;   

DOI  :  10.1596/1813-9450-4232
RP-ID  :  WPS4232

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The degree to which a labor market issegmented and jobs in the formal sector of the economy arerationed is critical to the analysis of coverage of socialinsurance and pensions. Using unique panel data spanning the1998-99 contraction in Chile, the author finds littleevidence that self-employment is the residual sector of adualistic labor market, as is often depicted in theliterature. Data on transitions between sectors show thatself-employment is not a free-entry sector, and thatentrepreneurs can be "pushed" out ofself-employment just as others are pushed out of formalemployment during economic downturns. But employment withouta contract does exhibit many of the features of thefree-entry, employment safety net depicted in the dualisticliterature. An annex to this paper presents supportiveevidence from static analysis of selection-corrected wagedifferentials and a comment on the drawbacks of this approach.