Regional Wage Gaps, Education and Informality in an Emerging Country: The Case of Colombia

Re-examining the Brazilian South–Northeast labour income gap: A decomposition approach

“…Several studies have already used RIF to investigate gender inequality (Chi and Li 2008;Kilic et al 2015), racial inequality (Heywood and Parent 2012), urban-rural inequality (Ndoye 2013), the evolution of inequality through time (Firpo et al 2011) and regional inequality (Perreira and Galego 2014;Herrera-Idárraga et al 2016;Huertas et al 2020). In Brazil, applications have focused on the factors that explain the evolution of inequality through time, such as education and experience (Ferreira, et al 2017) and minimum wage (Brito et al 2013).…”

“…Pereira and Galego (2014) applied the quantilebased decomposition method proposed by Machado and Mata (2005) and Melly (2005Melly ( , 2006) to decompose regional wage differentials across the entire wage distribution of Portugal. Following the innovative strategy proposed by Firpo et al (2009Firpo et al ( , 2011, involving reweighting and recentered influence function (RIF) regressions, to provide a detailed decomposition of both composition and structure effects along wage distributions, something not possible using previous techniques, Perreira and Galego (2014), Herrera-Idárraga et al (2016), and Huertas et al (2020) considered, respectively, the cases of Portugal, Colombia, and Spain. The evidence provided by these studies confirms the existence of important variations in the level of regional inequality along the wage distribution.…”

Diferencias regionales en el ingreso laboral y el papel de la educación, informalidad laboral y el sector público. El caso de Ecuador

“…El análisis se puede realizar tanto en la media como en diferentes puntos de la distribución, lo que permite un mejor entendimiento de las causas de las brechas regionales de salarios. Por ejemplo, Herrera-Idárraga et al (2016) analizan el caso de Colombia. Los autores estiman los retornos a la educación y la penalidad del trabajo informal de las regiones colombianas; posteriormente se descomponen las brechas salariales en la contribución de la distribución regional de las características y la estructura salarial.…”

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

“…This duality (gap) in the labour market is a potential source of disparities that can be translated to a spatial dimension since the incidence of informality is heterogeneous across space. It has been pointed out that regional heterogeneity in the incidence of informality is another potential source of regional inequality in emerging countries (Herrera‐Idárraga, López‐Bazo, & Motellón, 2016). Then, by considering informality as a source of inequality, a policy designed to increase human capital could be used to reduce both of them.…”