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Is the wage curve formal or informal? Evidence for Colombia

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Using microdata from the 2002-2006 Colombian Continuous Household Survey, we find an elasticity of individual wages to local unemployment rates of -0.07. However, the elasticity for informal workers is significantly higher, a result which is consistent with efficiency wage theoretical models and relevant for regional labour markets analysis in developing countries.

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RAMOS LOBO, Raúl, DUQUE, Juan Carlos and SURIÑACH CARALT, Jordi. Is the wage curve formal or informal? Evidence for Colombia. Economics Letters. 2010. Vol. 109, num. 2, pags. 63-65. ISSN 0165-1765. [consulted: 24 of May of 2026]. Available at: https://hdl.handle.net/2445/44103

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