Labor informality and market segmentation in Senegal

Understanding the selection of workers into informality is a policy priority to design programs to increase formalization across Sub-Saharan Africa, where nine out of ten workers are informal. This paper estimates a model of self-selection with entry barriers into the formal sector to identify the e...

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Autores principales: Carlos Rodríguez-Castelán, Vazquez, Emmanuel José
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2023
Materias:
Ciencias Económicas
labor informality
segmentation
labor markets
Senegal
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/158889
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-158889
record_format dspace
spelling I19-R120-10915-1588892023-10-13T04:06:46Z http://sedici.unlp.edu.ar/handle/10915/158889 Labor informality and market segmentation in Senegal Carlos Rodríguez-Castelán Vazquez, Emmanuel José 2023-10 2023-10-12T17:59:02Z en Ciencias Económicas labor informality segmentation labor markets Senegal Understanding the selection of workers into informality is a policy priority to design programs to increase formalization across Sub-Saharan Africa, where nine out of ten workers are informal. This paper estimates a model of self-selection with entry barriers into the formal sector to identify the extent of involuntary informality in Senegal, a representative country in terms of levels of informality in West Africa and with one of the most rigid labor markets in the world. Results show that the desire of being formal is greater for workers with formal education, married and with a lower proportion of children under the age of 5 living in the household. The individual's preference for the formal sector also grows with age at a decreasing rate. Results also show that labor informality is mainly a voluntary phenomenon with 30 percent of informal workers being involuntarily displaced into the informal sector. Results are robust to different model specifications, definitions of labor informality and heterogenous groups of workers. Centro de Estudios Distributivos, Laborales y Sociales Articulo Documento de trabajo http://creativecommons.org/licenses/by/4.0/ Creative Commons Attribution 4.0 International (CC BY 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
labor informality
segmentation
labor markets
Senegal
spellingShingle Ciencias Económicas
labor informality
segmentation
labor markets
Senegal
Carlos Rodríguez-Castelán
Vazquez, Emmanuel José
Labor informality and market segmentation in Senegal
topic_facet Ciencias Económicas
labor informality
segmentation
labor markets
Senegal
description Understanding the selection of workers into informality is a policy priority to design programs to increase formalization across Sub-Saharan Africa, where nine out of ten workers are informal. This paper estimates a model of self-selection with entry barriers into the formal sector to identify the extent of involuntary informality in Senegal, a representative country in terms of levels of informality in West Africa and with one of the most rigid labor markets in the world. Results show that the desire of being formal is greater for workers with formal education, married and with a lower proportion of children under the age of 5 living in the household. The individual's preference for the formal sector also grows with age at a decreasing rate. Results also show that labor informality is mainly a voluntary phenomenon with 30 percent of informal workers being involuntarily displaced into the informal sector. Results are robust to different model specifications, definitions of labor informality and heterogenous groups of workers.
format Articulo
Documento de trabajo
author Carlos Rodríguez-Castelán
Vazquez, Emmanuel José
author_facet Carlos Rodríguez-Castelán
Vazquez, Emmanuel José
author_sort Carlos Rodríguez-Castelán
title Labor informality and market segmentation in Senegal
title_short Labor informality and market segmentation in Senegal
title_full Labor informality and market segmentation in Senegal
title_fullStr Labor informality and market segmentation in Senegal
title_full_unstemmed Labor informality and market segmentation in Senegal
title_sort labor informality and market segmentation in senegal
publishDate 2023
url http://sedici.unlp.edu.ar/handle/10915/158889
work_keys_str_mv AT carlosrodriguezcastelan laborinformalityandmarketsegmentationinsenegal
AT vazquezemmanueljose laborinformalityandmarketsegmentationinsenegal
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