Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment

We examine whether the Colombian government's expansion of social programs in the early 1990s, particularly the publicly provided health insurance, discouraged formal employment. Using household survey data and variation across municipalities in the onset of interviews for the SISBEN, the instr...

Full description

Bibliographic Details
Main Authors: Camacho, Adriana, Conover, Emily, Hoyos, Alejandro
Format: Journal Article
Language:en_US
Published: Oxford University Press on behalf of the World Bank 2016
Subjects:
Online Access:http://hdl.handle.net/10986/24193
id okr-10986-24193
recordtype oai_dc
spelling okr-10986-241932021-04-23T14:04:20Z Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment Camacho, Adriana Conover, Emily Hoyos, Alejandro extended families informal employment living standards social policy unemployment workers workplace labor laws health services sick leave We examine whether the Colombian government's expansion of social programs in the early 1990s, particularly the publicly provided health insurance, discouraged formal employment. Using household survey data and variation across municipalities in the onset of interviews for the SISBEN, the instrument used to identify beneficiaries for public health insurance, we find robust and consistent estimates of an increase in informal employment of approximately 4 percentage points. We find similar results using an alternative dataset, consisting of a panel of individuals interviewed for the first and second SISBEN. Our findings suggest that marginal individuals optimized when deciding whether to participate in the formal sector. 2016-05-03T21:36:05Z 2016-05-03T21:36:05Z 2014-10-02 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/24193 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research Colombia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language en_US
topic extended families
informal employment
living standards
social policy
unemployment
workers
workplace
labor laws
health services
sick leave
spellingShingle extended families
informal employment
living standards
social policy
unemployment
workers
workplace
labor laws
health services
sick leave
Camacho, Adriana
Conover, Emily
Hoyos, Alejandro
Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment
geographic_facet Colombia
description We examine whether the Colombian government's expansion of social programs in the early 1990s, particularly the publicly provided health insurance, discouraged formal employment. Using household survey data and variation across municipalities in the onset of interviews for the SISBEN, the instrument used to identify beneficiaries for public health insurance, we find robust and consistent estimates of an increase in informal employment of approximately 4 percentage points. We find similar results using an alternative dataset, consisting of a panel of individuals interviewed for the first and second SISBEN. Our findings suggest that marginal individuals optimized when deciding whether to participate in the formal sector.
format Journal Article
author Camacho, Adriana
Conover, Emily
Hoyos, Alejandro
author_facet Camacho, Adriana
Conover, Emily
Hoyos, Alejandro
author_sort Camacho, Adriana
title Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment
title_short Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment
title_full Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment
title_fullStr Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment
title_full_unstemmed Effects of Colombia's Social Protection System on Workers' Choice between Formal and Informal Employment
title_sort effects of colombia's social protection system on workers' choice between formal and informal employment
publisher Oxford University Press on behalf of the World Bank
publishDate 2016
url http://hdl.handle.net/10986/24193
_version_ 1764455897207144448