On defining and measuring the informal sector

A range of alternative empirical definitions of informal activity have been employed in the literature. Choice of definition is often dictated by data availability. Different definitions may imply very different conceptual understandings of informality. In this paper the authors investigate the degree of congruence between three definitions of informality based on employment contract registration, social security protection, and the characteristics of the employer and employment using Brazilian household survey data for the period 1992 to 2001. The authors present evidence showing that 64 percent of the economically active population are informal according to at least one definition, but only 40 percent are informal according to all three. Steady compositional changes have been taking place among informal workers, conditional on definition. The econometric analysis reveals that the conditional impact of particular factors (demographic, educational attainment, and family circumstances) on the likelihood of informality varies considerably from one definition to another. The results suggest growing heterogeneity within the informal sector. Therefore, the authors argue that informal activity may be as much associated with entrepreneurial dynamism as with any desire to avoid costly contract registration and social protection. However, the authors confirm there is no a priori reason for entrepreneurial activity to be unprotected. Consequently definitions of informality based on occupation and employer size seem the most arbitrary in practice even if conceptually well-founded.Labor Markets,Labor Standards,Work&Working Conditions,Labor Management and Relations,Tertiary Education

Human capital and earnings inequality in Brazil, 1988-98 : quantile regression evidence

The authors undertake an empirical examination of rates of return to human capital for men in Brazil, through the period of macroeconomic stabilization and trade liberalization, using data from the 1988, 1992, and 1998 Brazilian household surveys (Pesquisa Nacional por Amostra de Domic?os, PNAD). The authors estimate simultaneous quantile equations to gain an insight on the impact of human capital on wages across the hourly earnings distribution. They conclude that there is evidence of growing inequality in rates of return to education in Brazil. But the authors find evidence that education is no longer used as a screening device in the labor market, but rather rewarded for its innate association with higher productivity. Although increases in rates of return to education have been more pronounced at the top of the earnings distribution, this has not led to increased inequality. This is because the levels of education and other labor market-rewarded endowments have increased and offset the rate of return effect.Public Health Promotion,Decentralization,Health Monitoring&Evaluation,Curriculum&Instruction,Teaching and Learning,Economic Theory&Research,Fiscal&Monetary Policy,Curriculum&Instruction,Teaching and Learning,Health Monitoring&Evaluation

Returns to Education in Four Transition Countries: Quantile Regression Approach

This paper uses quantile regression techniques to analyze heterogeneous patterns of return to education across the conditional wage distribution in four transition countries. We correct for sample selection bias using a procedure suggested by Buchinsky (2001), which is based on a Newey (1991, 2009) power series expansion. We also examine the empirical implications of allowing for the endogeneity of schooling, using the control function approach proposed by Lee (2007). Using household data from Bulgaria, Russia, Kazakhstan and Serbia in 2003, we show that the return to education is heterogeneous across the earnings distribution. It is also found that accounting for the endogeneity of schooling leads to a higher rate of return to education.sample selection, endogeneity, rate of return to education, quantile regression

Gender wage differentials in Brazil : trends over a turbulent era

Since the late 1980s, macroeconomic and trade reform in Brazil appears to have been accompanied by a substantial improvement in the position of women compared with men in the labor market, despite only modest changes to labor market institutions. The authors examine movements in the gender wage gap from 1988 to 1998. Their findings indicate that, over this period, the gender wage gap fell mainly because of reduced discrimination against women. But the authors find evidence to suggest that, more recently, since the elimination of high inflation, human capital investments and other earnings-related enhancements have begun to improve women's condition.Public Health Promotion,Anthropology,Health Monitoring&Evaluation,Gender and Development,Population&Development,Anthropology,Agricultural Knowledge&Information Systems,Environmental Economics&Policies,Health Monitoring&Evaluation,Population&Development

Gays' Pay in the UK

This paper attempts, for the first time for the UK, to analyse the earnings of homosexuals and test for the possible existence of sexual orientation discrimination. Homosexuals are identified as individuals living with "same sex partners". Using twenty quarters of the LFS, we identify 630 homosexuals. Decomposition analysis indicates that although gays earn more than non-gays they are still discriminated against. However, looking at gay men and lesbians separately we find that it is homosexual men who are subject to discrimination and therefore are likely to benefit from legislation that has to be in place in the UK by the end of 2003.

If Not Computers Then What? Returns to Computer Use in the UK Revisited

In recent years much attention has been paid to the effect on wages of skill-biased technology, especially the use of computers. Although empirical studies have shown a positive relationship between computer-use and earnings, doubts have been cast on whether this is a causal relationship or merely represents unobserved other factors, which are themselves positively linked to computer usage. In this paper we provide evidence that computers themselves raise wages. Although their impact on wages falls as other controls are included in the regression, it still remains significant whilst the effect of another proxy for unobserved factors becomes insignificant. Furthermore, improvements in computer use have an additional impact on earnings, supporting the productivity interpretati

Comparison of outlier detection at the edges of point clouds using statistical approach and fuzzy methodology: ground-based laser scanner field experiment and randomly simulated point cloud

The random error is following the features of normal distribution function (NDF) which those random errors deviated from the NDF's characteristics can be considered as outliers. In fact, the outliers exist inevitably in any observed parameter that is an undesirable part of the measurement's procedure due to its negative influence on the sensitivity analysis. It is therefore necessary to investigate more efficient methodologies especially for current remote sensing data processing and assimilations. In this paper, the comparisons of Baarda method as the conventional statistical methodology with the Fuzzy approach are presented to detect the outliers at the edges of two data groups: 1. The point cloud of ground-based laser scanner field experiment from one side of a wall, and 2. A group of randomly simulated distributed 3D point cloud. The results show that the Baarda method eliminates the outliers as soon as they are being found while the Fuzzy approach works critically based on the outputs of the statistical tests. Thus, the Fuzzy approach deals mostly with the residuals and those observed errors in the adjustment computational procedures. The obtained results about the successfulness rate of outlier detection for each method are separately presented in both graphical and statistical overview. Also, the capabilities of Fuzzy approach to detect the outliers in different point cloud's size and numbers of existing outliers at the edges of point cloud are investigated and discussed in details

Snow-covered surface variability and DEM generation using aerial photogrammetry in Mount Odin, Canada

Seasonal snow-covered surface has a critical role in global water resource supplement especially providing fresh water for humankind and flora's consumptions as well as local underground water storages. The in situ measurements of seasonal snow-covered variability are extensively prodigal and costly particularly in existence of severe climate conditions such as high latitude regions and polar areas. It is therefore necessary to apply remote sensing techniques and observations to estimate accurately the snowpack melting and accumulation for different seasons. In this paper, we estimate snow-covered surface variability for four different seasons of year in Mount Odin, Canada using aerial photos. In order to do this, firstly Digital Elevation Model (DEM) with respect to Earth Gravitational Model 1996 (EGM96) for each flight mission of A, B, C and D from these aerial photos by applying Bundle Adjustment (BA) triangulation is being generated precisely. Moreover, the displacement of each two DEMs is computing in order to determine snow-covered surface variability between each two flight missions. The results demonstrate that flight mission C has the highest elevation topographically compare to the missions A, B and D while mission C was planned in February 2011 in existence of vast snow throughout Mount Odin area as well as mission C's DEM which has higher elevation values than the others. The proposed methodology and problem solution and the case study information with the details of each flight mission are discussed in expatiation

Is there an informal employment wage premium? Evidence from Tajikistan

This paper defines informal sector employment and decomposes the difference in earnings between formal and informal sector employees in Tajikistan for 2007. Using quantile regression decomposition technique proposed by JAE, 20:445-465, 2005and considering self-selection of individuals into different employment types, we find a significant informal employment wage premium across the whole earnings distribution. Taking advantage of RES, 90:290-299, 2008matching approach and considering the possibility of misleading results due to different observed characteristics of formal and informal workers, we still find a wage gap in favour of informal sector workers

Informal employment in Kazakhstan: a blessing in disguise?

Informality is heterogeneous, dynamic and difficult to quantify; the formal–informal gap in earnings is one major component of it that we wish to examine. Using the 2013 Kazakhstan Labor Force Survey, we analyze the returns that formal and informal workers receive for a given set of characteristics and also use a matching technique to decompose the gap. We observe that in Kazakhstan, there is a substantial earnings gap in favor of formal workers and that a quarter of the gap remains unexplained. Our study also highlights the importance of matching-based decomposition and distributional analysis in explaining the differences in earnings between formal and informal workers