出版社：Universidad Nacional de Colombia - Facultad de Ciencias Económicas
摘要：This article aims to analyze the effect of minimum wage levels on the decision to join the informal job sector. We estimated a pseudo panel model of engagement in the informal sector using an IV-probit. Our results show that an increased wage gap—the relative difference between observed and minimum wage—has not only a disincentive effect on the probability of joining informality, but also leads to a substitution effect between younger and older cohorts.
