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Is there an informal employment wage premium? Evidence from Tajikistan

Staneva, Anita V and Arabsheibani, G. Reza (2014) Is there an informal employment wage premium? Evidence from Tajikistan. IZA Journal of Labor & Development, 3 (1). p. 1. ISSN 2193-9020

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Identification Number: 10.1186/2193-9020-3-1


This paper defines informal sector employment and decomposes the difference in earnings between formal and informal sector employees in Tajikistan for 2007. Using quantile regression decomposition technique proposed by JAE, 20:445-465, 2005and considering self-selection of individuals into different employment types, we find a significant informal employment wage premium across the whole earnings distribution. Taking advantage of RES, 90:290-299, 2008matching approach and considering the possibility of misleading results due to different observed characteristics of formal and informal workers, we still find a wage gap in favour of informal sector workers.

Item Type: Article
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Additional Information: © 2014 Springer
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited: 25 Oct 2018 13:21
Last Modified: 20 Oct 2021 02:14

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