This paper uses Colombian micro-data to analyze the role of education and informality in regional wage differentials. The hypothesis is that apart from differences in the endowment of human capital, regional heterogeneity in the incidence of informality is another important source of regional wage inequality in emerging countries. This is confirmed by the evidence from Colombia, which also reveals remarkable spatial heterogeneity in the wage return to individuals' characteristics. Regional heterogeneity in returns to education is especially intense in the upper part of the wage distribution. In turn, heterogeneity in the informal pay penalty is more relevant at the bottom.
English
wage differentials; quantile-based decompositions; informal jobs; economic development; diferenciales salariales; descomposiciones basadas en cuantiles; trabajos informales; desarrollo económico; diferències salarials; descomposicions basades en quantils; llocs de treball informals; desenvolupament econòmic; Equal pay for equal work; Igualtat retributiva; Igualdad retributiva
Spatial Economic Analysis
Spatial Economic Analysis, 2016, 11(4)
http://diposit.ub.edu/dspace/bitstream/2445/108490/1/669657.pdf
info:eu-repo/grantAgreement/ECO2011-30260-C03-03
info:eu-repo/grantAgreement/SSH-2010-2.2-266834
info:eu-repo/grantAgreement/FI-DGR 2012
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