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Informal versus Formal: A Panel Data Analysis of Earnings Gaps in Madagascar

hal.structure.identifierDéveloppement, institutions et analyses de long terme [DIAL]
hal.structure.identifierLaboratoire d'Economie de Dauphine [LEDa]
dc.contributor.authorNordman, Christophe Jalil
HAL ID: 735601
ORCID: 0000-0002-8368-4086
hal.structure.identifierDéveloppement, institutions et analyses de long terme [DIAL]
dc.contributor.authorRakotomanana, Faly
hal.structure.identifierDéveloppement, institutions et analyses de long terme [DIAL]
hal.structure.identifierLaboratoire d'Economie de Dauphine [LEDa]
dc.contributor.authorRoubaud, François
dc.date.accessioned2022-05-05T09:02:32Z
dc.date.available2022-05-05T09:02:32Z
dc.date.issued2016-10
dc.identifier.issn0305-750X
dc.identifier.urihttps://basepub.dauphine.psl.eu/handle/123456789/22924
dc.language.isoenen
dc.subjectinformal sectoren
dc.subjectearnings gapen
dc.subjecttransition matrixen
dc.subjectpanel dataen
dc.subjectMadagascaren
dc.subject.ddc338.9en
dc.subject.classificationjelO17en
dc.subject.classificationjelO55en
dc.subject.classificationjelO15en
dc.titleInformal versus Formal: A Panel Data Analysis of Earnings Gaps in Madagascaren
dc.typeArticle accepté pour publication ou publié
dc.description.abstractenLittle is known about the informal sector’s income structure vis-à-vis the formal sector, despite its predominant economic weight in developing countries. While most of the papers on this topic are drawn from (emerging) Latin American, Asian or some African countries, Madagascar represents an interesting case. So far, very few studies in general, even less so in Sub-Saharan Africa, used panel data to provide evidence of the informal sector heterogeneity. Taking advantage of the 1-2-3 Surveys in Madagascar, a four-wave panel dataset (2000–04), we assess the magnitude of various formal/informal sector earnings gaps. Is there an informal sector job earnings penalty? Do some informal sector jobs provide pecuniary premiums and which ones? Do possible gaps vary along the earnings distribution? Ignoring distributional issues is indeed a strong limitation, given the compound question of how informality affects earnings inequality. We address heterogeneity issues at three different levels: the worker, the employment status (wage employment vs. self-employment) and the earnings distribution. Standard earnings equations are estimated at the mean and at various conditional quantiles of the earnings distribution. The results suggest that the sign and magnitude of the formal–informal sector earnings gaps highly depend on the workers’ employment status and on their relative position in the earnings distribution. In the case of a poor and fragile country like Madagascar, these findings provide new and robust empirical backups for the existence of a mix between the traditional exclusion vs. exit hypotheses of the informal sector.en
dc.relation.isversionofjnlnameWorld Development
dc.relation.isversionofjnlvol86en
dc.relation.isversionofjnldate2016-10
dc.relation.isversionofjnlpages1-17en
dc.relation.isversionofdoi10.1016/j.worlddev.2016.05.006en
dc.relation.isversionofjnlpublisherElsevieren
dc.subject.ddclabelCroissance et développement économiquesen
dc.relation.forthcomingnonen
dc.description.ssrncandidatenon
dc.description.halcandidateouien
dc.description.readershiprechercheen
dc.description.audienceInternationalen
dc.relation.Isversionofjnlpeerreviewedouien
dc.date.updated2022-02-01T12:31:30Z
hal.identifierhal-03659649
hal.version1
dc.subject.classificationjelHALO.O1.O15en
dc.subject.classificationjelHALO.O1.O17en
dc.subject.classificationjelHALO.O5.O55en
hal.date.transferred2022-05-05T09:02:33Z
hal.author.functionaut
hal.author.functionaut
hal.author.functionaut


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