Youth Labor Informality in Colombia
Keywords:
job quality, Colombia, economic development, education, employment, economic structure, labor informality, labor market integration, youth, labor market, probit models, social mobilityMain Article Content
Introduction
Labor informality is a salient feature of developing countries' occupational structure. Although young people exhibit lower informality rates, this is particularly significant given that the quality of first employment shapes their long-term labor market trajectories. Moreover, young people are especially vulnerable during the transition from school to work, within an economic environment characterized by weak labor demand.
Objective
The objective of this article is to analyze the relevance of labor informality among young people in Colombia, and to examine how observable characteristics at the individual, household, and occupational level predict the likelihood that young people will be informally employed.
Methodology
To this end, microdata from the Integrated Household Survey (2019) are used to produce descriptive statistics and estimate models of the probability of informal employment among young people, accounting for potential sample selection bias.
Results
The findings indicate that the probability of informal employment is lower for women, for those who face fewer immediate financial pressures from dependents, for those whose parents have higher levels of education, for those who work longer daily hours, and for those employed in the manufacturing or service sectors.
Conclusions
Educational and labor policies aimed at improving the transition from school to work are essential to prevent a progressive increase in informality rates over the life course. However, many factors beyond young people's immediate living conditions and opportunities also shape the quality of their employment, including their parents' employment status and income, and low social mobility.
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