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Do workers in Chile choose informal employment? : a dynamic analysis of sector choice

Author: Truman Packard
Publisher: [Washington, D.C.] : World Bank, Latin America and the Caribbean Region, Social Projection Unit, [2007]
Series: Policy research working papers, 4232.
Edition/Format:   Print book : International government publication : EnglishView all editions and formats
Summary:
The degree to which a labor market is segmented and jobs in the formal sector of the economy are rationed is critical to the analysis of coverage of social insurance and pensions. Using unique panel data spanning the 1998-99 contraction in Chile, the author finds little evidence that self-employment is the residual sector of a dualistic labor market, as is often depicted in the literature. Data on transitions  Read more...
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Additional Physical Format: Online version:
Packard, Truman.
Do workers in Chile choose informal employment?
[Washington, D.C.] : World Bank, Latin America and the Caribbean Region, Social Projection Unit, [2007]
(OCoLC)646937275
Material Type: Government publication, International government publication, Internet resource
Document Type: Book, Internet Resource
All Authors / Contributors: Truman Packard
OCLC Number: 156937232
Notes: "May 2007."
Description: 56 pages : illustrations ; 28 cm.
Series Title: Policy research working papers, 4232.
Responsibility: by Truman G. Packard.

Abstract:

The degree to which a labor market is segmented and jobs in the formal sector of the economy are rationed is critical to the analysis of coverage of social insurance and pensions. Using unique panel data spanning the 1998-99 contraction in Chile, the author finds little evidence that self-employment is the residual sector of a dualistic labor market, as is often depicted in the literature. Data on transitions between sectors show that self-employment is not a free-entry sector, and that entrepreneurs can be "pushed" out of self-employment just as others are pushed out of formal employment during economic downturns. But employment without a contract does exhibit many of the features of the free-entry, employment safety net depicted in the dualistic literature. An annex to this paper presents supportive evidence from static analysis of selection-corrected wage differentials and a comment on the drawbacks of this approach.

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