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cc-by-nc-nd, (c) Matano et al., 2018
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/124873

What drives the spatial wage premium for formal and informal workers? The case of Ecuador [WP]

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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.

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MATANO, Alessia, OBACO ÁLVAREZ, Moisés lenyn, ROYUELA MORA, Vicente. What drives the spatial wage premium for formal and informal workers? The case of Ecuador [WP]. _IREA – Working Papers_. 2018. Vol.  IR18/13. [consulta: 15 de gener de 2026]. [Disponible a: https://hdl.handle.net/2445/124873]

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