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Title: | What drives the spatial wage premium for formal and informal workers? The case of Ecuador [WP] |
Author: | Matano, Alessia Obaco Álvarez, Moisés Lenyn Royuela Mora, Vicente |
Keywords: | Externalitats (Economia) Desenvolupament econòmic Ocupació Salaris Equador Externalities (Economics) Economic development Employment (Economic theory) Wages Ecuador |
Issue Date: | 2018 |
Publisher: | Universitat de Barcelona. Facultat d'Economia i Empresa |
Series/Report no: | [WP E-IR18/13] [WP E-AQR18/06] |
Abstract: | This article investigates the incidence of agglomeration externalities in a typical developing country, Ecuador. In particular, we analyze the role of the informal sector within these relations, since informal employment accounts for a significant part of total employment in the developing countries. Using individual level data and instrumental variable techniques, we investigate the impact of spatial externalities, in terms of population size and local specialization, on the wages of workers in Ecuadorian cities. The results show that spatial externalities matter also for a typical developing country, especially as far as urbanization externalities are concerned. Moreover, analysis of the interaction between spatial externalities and the informal economy shows a general penalization for informal workers in terms of benefits arising from agglomeration externalities. Finally, by investigating the possible channels behind the heterogeneity found in spatial agglomeration gains between formal and informal workers, we show that the advantages from agglomeration for formal workers may well be accounted for by positive sorting and better gains from job changes, while for informal workers they rise from positive learning externalities. |
Note: | Reproducció del document publicat a: http://www.ub.edu/irea/working_papers/2018/201813.pdf |
It is part of: | IREA – Working Papers, 2018, IR18/13 AQR – Working Papers, 2018, AQR18/06 |
URI: | http://hdl.handle.net/2445/124873 |
Appears in Collections: | AQR (Grup d’Anàlisi Quantitativa Regional) – Working Papers Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA)) |
Files in This Item:
File | Description | Size | Format | |
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IR18-013_Matano+Obaco+Royuela.pdf | 2.6 MB | Adobe PDF | View/Open |
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