Informality, city structure and rural–urban migration in Latin America

Posada, Héctor Mauricio; Moreno-Monroy, Ana I.

doi:10.1007/s00168-017-0834-5

Cited by 8 publications

(2 citation statements)

References 22 publications

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“…One of the causes that can explain the trend in reduction of informality described previously, is the more active control policy and more regulation of employment, to reduce the propensity to evade labour taxes (Posada & Moreno‐Monroy, 2017). However, there are other explanations of this tendency such as the educational policies developed during last years (Alzua & Gasparini, 2015).…”

Section: Introductionmentioning

confidence: 99%

Education as a key to reduce spatial inequalities and informality in Argentinean regional labour markets

Quiroga-Martínez

Vázquez

2021

Regional Science Policy & Practice

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This paper assesses the effects of the individual educational capital on their odds to belong to the formal or informal labour market in Argentina. Using recent microdata that studies more than 11,000 workers we estimate a probit model that relates the probability of belonging to the formal or informal labour market depending on his/her years of schooling and other control variables. Our findings provide empirical evidence of the significant effect of making effective the legal minimum schooling years in order to reduce the informality rate and show that education policies could be used as a way of reducing regional inequalities in Argentina.

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Section: Introductionmentioning

confidence: 99%

Education as a key to reduce spatial inequalities and informality in Argentinean regional labour markets

Quiroga-Martínez

Vázquez

2021

Regional Science Policy & Practice

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“…On the labor 19 The within-city location may in turn be related to urban informality and unemployment. For example, Posada and Moreno-Monroy (2017) show that rural-urban migration increases with cities' decentralization, and argue that this effect is driven by lower costs of housing in the outskirts. They also find that this effect is correlated with a larger decentralization of informal jobs.…”

Section: Introducing Housing Marketsmentioning

confidence: 99%

Rural-Urban Migration at High Urbanization Levels

Busso¹,

Chauvin²,

L.³

2020

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This study assesses the empirical relevance of the Harris-Todaro model at high levels of urbanization a feature that characterizes an increasing number of developing countries, which were largely rural when the model was created 50 years ago. Using data from Brazil, the paper compares observed and model-based predictions of the equilibrium urban employment rate of 449 cities and the rural regions that are the historic sources of their migrant populations. Little support is found in the data for the most basic version of the model. However, extensions that incorporate labor informality and housing markets have much better empirical traction. Harris-Todaro equilibrium relationships are relatively stronger among workers with primary but no high school education, and those relationships are more frequently found under certain conditions: when cities are relatively larger; and when associated rural areas are closer to the magnet city and populated to a greater degree by young adults, who are most likely to migrate.

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