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...

Abstract: Sample selection bias is common in economic models based on micro data. Despite the continuous generalization of panel data surveys most countries still collect microeconomic information on economic agents´ behaviour by means of repeated independent and representative cross-sections....

This paper discusses the effect of the minimum wage level on the decision to join the informal job sector. We estimate a pseudo panel of the engagement in the informal sector using an IV-probit. The findings show that an increase in the minimum wage level leads to a substitution effect between...

Informality is a common phenomenon in developing countries and an unusual one in industrialized countries. The persistence of informal employment is indicative of the impossibility of moving out of this status for a certain period of time. Using pseudo panel data, empirical evidence is presented...

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'...

We use information gathered from 122 studies on the effects of high school degrees on wages in different countries worldwide to carry out a meta-analysis that shows high school degrees have a statistically significant effect on wages of nearly 8%. This effect varies either when the review is...

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...

Sample selection bias is commonly used in economic models based on micro data. Despite the continuous generalization of panel data surveys, most countries still collect microeconomic information on the behavior of economic agents by means of repeated independent and representative...

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'...

This paper discusses the existence of diploma earnings differences by gender in Colombia with a model of sheepskin effects based on pseudo panel data for the period 1996-2000. Our results show a significant and distinctive effect of high school and university degrees among men and women. Thus,...