Diferencias de ingresos y retornos a la educación entre trabajadores formales e Informales en Colombia

Abstract

"This paper examines the differences in returns to education throughout the distribution of wages and the differences in earnings between the formal and informal sector in Colombia in the years 1997 and 2003. The informal sector was constructed based on the dualistic and structural definitions. Results indicate that people with less than 11 years of education and in the highest segment of wage distribution have a greater return in the formal sector. For this same group of people, a better return was found in the informal sector in the lower part of the distribution. For people with more than 11 years of education, returns are greater in the informal sector beginning in the middle of the wage distribution. Finally, a favorable difference in earning was found in favor of the formal sector."