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IR15-009_HerreraIdarraga.pdf (1.31 MB)

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Working paper

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2015

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cc-by-nc-nd, (c) Herrera-Idárraga et al., 2015
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/62347

Regional wage gaps, education, and informality in an emerging country. The case of Colombia [WP]

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Abstract

This paper uses Colombian micro-data to analyze the role of education and informality on regional wage differentials. Our hypothesis is that apart from differences in the endowment of human capital across regions, regional heterogeneity in the incidence of informality is another important source of regional wage inequality in developing and emerging countries. This is confirmed by the evidence from Colombia, which in addition reveals remarkable heterogeneity across territories 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 in the lower part.

Subject

Mercat de treball, Recursos humans, Igualtat retributiva, Desenvolupament econòmic, Colòmbia

Subject (English)

Labor market, Human capital, Pay equity, Economic development, Colombia

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Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))
AQR (Grup d’Anàlisi Quantitativa Regional) – Working Papers
Documents de treball / Informes (Econometria, Estadística i Economia Aplicada)
Publicacions de projectes de recerca finançats per la UE

Citation

HERRERA-IDÁRRAGA, Paula, LÓPEZ-BAZO, Enrique and MOTELLÓN CORRAL, Elisabet. Regional wage gaps, education, and informality in an emerging country. The case of Colombia [WP]. IREA – Working Papers. 2015. Vol.  IR15/09. ISSN 2014-1254. [consulted: 18 of August of 2026]. Available at: https://hdl.handle.net/2445/62347

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