This article aims to analyze the effect of minimum wage levels on the decision to join the informal job sector. We estimated a pseudo panel model of engagement in the informal sector using an IV-probit. Our results show that an increased wage gap—the relative difference between observed and...

In the presence of selection bias the traditional estimators for pseudo panel data models are inconsistent. This paper discusses a method to achieve consistency in static linear pseudo panels in the presence of selection bias and a testing procedure for sample selection bias. The authors'...

Purpose – The purpose of this paper is to discuss sheepskin effects in Colombia based on repeated cross-section or pseudo panel data using cohorts in seven larges cities in Colombia. Design/methodology/approach – A Pseudo Panel Data methodology is used as the basis for determining and...

In the presence of selection bias the traditional estimators for pseudo panel data models are inconsistent. This paper discusses a method to achieve consistency in static linear pseudo panels in the presence of selection bias and a testing procedure for sample selection bias. The authors'...