Competitive and Segmented Informal Labor Markets
Competitive and Segmented Informal Labor Markets
It has been recently argued that the informal sector of the labor market in a developing economy shows a dual structure with one part of it being competitive to the formal sector and another part being the result of market segmentation. To test this hypothesis we formulate an econometric model which allows for a heterogeneous informal sector with unobserved individual affiliation and which takes into account selection bias induced by the employment decision of individuals. Our test results for the urban labor market in Côte d'Ivoire indeed show existence of both competitive and segmented employment in the informal sector.
ddc:330, segmentation, comparative advantage, O17, finite mixture, developing economy, informal labor market, segmentation, comparative advantage, selection bias, latent structure, finite mixture models, developing economy,informal labor market,segmentation,comparative advantage,selection bias,latent structure,finite mixture models, informal labor market, developing economy, informal labor market,segmentation,comparative advantage,selection bias,latent structure,finite mixture, selection bias, J42, latent structure, finite mixture models, jel: jel:J42, jel: jel:O17
ddc:330, segmentation, comparative advantage, O17, finite mixture, developing economy, informal labor market, segmentation, comparative advantage, selection bias, latent structure, finite mixture models, developing economy,informal labor market,segmentation,comparative advantage,selection bias,latent structure,finite mixture models, informal labor market, developing economy, informal labor market,segmentation,comparative advantage,selection bias,latent structure,finite mixture, selection bias, J42, latent structure, finite mixture models, jel: jel:J42, jel: jel:O17
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