An empirical exploration of geographic heterogeneities in labor markets informality and minimum wage effects

Authors

  • Lucas Ferrero Universidad Nacional del Nordeste
  • Matías Hisgen Universidad Nacional del Nordeste

Keywords:

Minimum wage; Informality; Regional heterogeneities; Argentina.

Abstract

Dual labor markets, defined by the existence or not of a formal labor contract, are a widespread feature in developing countries. Part of this duality results from marked asymmetries between relevant groups and categories, given one-size-fits-all regulation. This article proposes an exploration of the relationship between informality and the minimum wage as a potential source of variation for the identification heterogeneous effects between regions in Argentina. The results obtained support the existence of heterogeneities in policy effects between the central and peripheral regions. The distribution of wages and the level of compliance with the associated minimum wage regulations are the main variables of interest; both exhibit differential effects across regions, stronger northern agglomerations. These are robust to various specifications and controls associated with interregional differences (educational levels, size of companies, sectoral differences, among others). Results have important implications given persistent regional backwardness, and heterogeneities in terms of the workings of both markets and related policies.

Author Biographies

Lucas Ferrero, Universidad Nacional del Nordeste

Profesor Titular Economía Monetaria y Macroeconomía II en Facultad de Ciencias Económicas de la Universidad Nacional del Nordeste. Doctor en Economía (Universidad Bocconi), Licenciado en Economía (UNNE). Interés en Economía Política y Desarrollo Económico.

Matías Hisgen, Universidad Nacional del Nordeste

Profesor Titular Econometría, JTP de Estadística II en Facultad de Ciencias Económicas de la Universidad Nacional del Nordeste. Doctor en Estadística (Universidad de Santiago de Compostela), Licenciado en Economía (UNNE). Interés en Microeconometría Aplicada y Desarrollo Económico.

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Published

2021-01-01

How to Cite

Ferrero, L., & Hisgen, M. (2021). An empirical exploration of geographic heterogeneities in labor markets informality and minimum wage effects. Scientific Journal Visión De Futuro, 25(1). Retrieved from https://revistacientifica.fce.unam.edu.ar/index.php/visiondefuturo/article/view/490

Issue

Section

Original Articles

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