Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229324
Authors: 
Alaniz, Enrique
Gindling, Thomas
Mata, Catherine
Rojas, Diego
Year of Publication: 
2020
Series/Report no.: 
WIDER Working Paper No. 2020/100
Abstract: 
We divide workers into six work statuses: formal self-employed, upper-tier informal self-employed, lower-tier informal self-employed, formal wage-employed, upper-tier informal wage-employed, and lower-tier informal wage-employed. In both Costa Rica and Nicaragua, earnings are highest for formal work, next for upper-tier informal, and last for lower-tier informal. Mobility out of lower-tier informal work is higher than out of all other work statuses. While many lower-tier informal workers leave employment or transition into other informal statuses, most transitions are from lower-tier informal into upper-tier informal and formal work. Transitions from all types of informality into formality are more common in Costa Rica than in Nicaragua, partly due to the larger proportion of formal workers within Costa Rica (58 per cent vs 19 per cent). Regressions of transitions on worker characteristics suggest that policies of providing vocational training and formal education to informal workers can promote transitions into betterpaying work statuses.
Subjects: 
employment
informal
worker mobility
Costa Rica
Nicaragua
JEL: 
J62
J63
O17
O54
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-857-3
Document Type: 
Working Paper

Files in This Item:
File
Size
512.78 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.