The Informal Labor Market in Colombia: identification and characterization

In this paper, we study the extent and nature of informality in Colombia by using the new chapter on informality in the Encuesta Continua de Hogares (ECH) from August 2006 to December 2006, which includes new questions deepening the information on coverage of social protection benefits, labor market trajectories, and motivations for sector of employment. The availability of these new data allows us to measure informality in several ways and understand the differences and implications of using various definitions. We show that social security contributions is a reasonable measure of informality as it is a good indicator that the individual has the entire package of benefits associated with formal employment. We then use this definition of informality to characterize informal workers in various dimensions that include socio-demographic characteristics, characteristics of the firm and job satisfaction measures. The main objective is to understand what types of individuals belong to formal and informal sectors, study the incentives and motivations of workers for belonging to one or other segment of the labor market, and analyze the consequences of not being covered by the regulatory framework. In doing this, we hope to gain some understanding about how different policy interventions could influence individuals´ occupation choices and workers´ well-being. In this paper, we study the extent and nature of informality in Colombia by using the new chapter on informality in the Encuesta Continua de Hogares (ECH) from August 2006 to December 2006, which includes new questions deepening the information on coverage of social protection benefits, labor market trajectories, and motivations for sector of employment. The availability of these new data allows us to measure informality in several ways and understand the differences and implications of using various definitions. We show that social security contributions is a reasonable measure of informality as it is a good indicator that the individual has the entire package of benefits associated with formal employment. We then use this definition of informality to characterize informal workers in various dimensions that include socio-demographic characteristics, characteristics of the firm and job satisfaction measures. The main objective is to understand what types of individuals belong to formal and informal sectors, study the incentives and motivations of workers for belonging to one or other segment of the labor market, and analyze the consequences of not being covered by the regulatory framework. In doing this, we hope to gain some understanding about how different policy interventions could influence individuals´ occupation choices and workers´ well-being.Informality, pension, health, job satisfaction

Monetary Policy Rules in Colombia

Este estudio reporta estimaciones de una función de reacción de política monetaria para Colombia durante el período 1991 a 1999. Los resultados indican que durante este período el Banco Central adoptó una regla implícita cuyo objetivo era la tasa de inflación. La evidencia también sugiere que el Banco Central respondió a la inflación anticipada en contraposición a la inflación rezagada. De acuerdo con los resultados, aún bajo la existencia de una banda cambiaria cuyo objetivo era servir de ancla nominal para la política monetaria, el Banco Central tuvo espacio para movimientos independientes de la tasa de interés siempre y cuando la tasa de cambio no se encontrara en alguno de los dos extremos de la banda.Función de reacción de política monetaria, tasa de inflación, tasa de interés, regla de Taylor

MONETARY POLICY RULES IN COLOMBIA

Este estudio reporta estimaciones de una función de reacción de política monetaria para Colombia durante el período 1991 a 1999. Los resultados indican que durante este período el Banco Central adoptó una regla implícita cuyo objetivo era la tasa de inflación. La evidencia también sugiere que el Banco Central respondió a la inflación anticipada en contraposición a la inflación rezagada. De acuerdo con los resultados, aún bajo la existencia de una banda cambiaria cuyo objetivo era servir de ancla nominal para la política monetaria, el Banco Central tuvo espacio para movimientos independientes de la tasa de interés siempre y cuando la tasa de cambio no se encontrara en alguno de los dos extremos de la banda.Función de reacción de política monetaria, tasa de inflación, tasa de interés, regla de Taylor

Changes in the distribution of income and the new economic model in Colombia

This paper has analyzed the changes in the distribution of income in Colombia since 1976 using data for urban economy (seven largest metropolitan areas) and for the manufacturing sector. Evidence is shown that the structural reforms that took place in the early 1990s have been related to higher income concentration in Colombia, where levels of inequality were already impressively high. The results suggest that both trade liberalization and skill complementary technological change have a positive impact on skill premiums. The evidence presented suggests that skill complementary technological change has been a key force behind the recent increase in the relative demand for more-educated workers. Much of the change in skill intensity has taken place within specific industries, rather than involving large reallocations between sectors. Trade reform has not resulted in a greater expansion of skill intensive sectors relative to unskilled intensive sectors. Quite the contrary, trade liberalization and other reforms, which lowered the user cost of capital and relaxed liquidity constraints, facilitated investment in skill complementary technologies within all sectors of production. Further evidence in this direction is provided by the fact that the largest increases in the relative earnings of the more educated workers took place in the non-traded sectors. The results suggest that both trade liberalization and skill complementary technological change have a positive impact on skill premiums. As the evidence presented in this paper shows, the structural reforms have been related to higher income concentration in Colombia, a country with already impressively high levels of inequality. For this reason, a better understanding of the relationship between the reforms and distribution is crucial to assess the future of the full reform agenda. Obviously this process has to be consistent with higher levels of growth, lower poverty and more equitable distribution of income.

Determinants of Labor Demand in Colombia: 1976-1996

Colombia's unemployment rate rose to 20% during the late 1990s from less than 8% in 1994. This paper argues that this has been the result of high non-wage labor costs embodied in the legislation. The estimated own-wage labor demand elasticity is around 0.5, which implies that a reduction in those costs, while politically costly, can have a significant payoff in terms of equity and efficiency. We also find that adjustment costs of changing employment as well as wage elasticities were not affected by changes in the regulations regarding severance payments and dismissal costs. In this sense, structural reforms did have an impact on labor demand through its effect on relative prices alone. Finally, we conclude that the wage elasticity of labor demand increases (in absolute terms) during contractions. Hence, the increase in prices and the beginning of a recession had a significant effect on employment.

Race and Ethnic Inequality in Health and Health Care in Colombia

In this paper we explore race and ethnic health inequalities in Colombia. We first characterize the situation of Afro-Colombians and indigenous populations in Colombia. Second, we document racial/ethnic disparities in health outcomes and access to health care using data from the Living Standards Survey and the evaluation of the Familias en Acción program. Third, we set up a statistical model that allows us to test whether some of the health inequalities that are observed still remain after controlling for a wide range of individual and household observed characteristics, including access to health care. The results indicate that most racial and ethnic disparities in health and access to health care disappear once we control for socioeconomic characteristics of individuals, employment status and characteristics of the job and geographic location among other things. Based on these findings we make some specific policy recommendations aimed at improving the status of racial minorities in Colombia.Salud, Seguros en salud, Raza y etnicidad.Health Outcomes, Health Care, Race and Ethnicity

La importancia de los programas para la primera infancia en Colombia

Este documento presenta evidencia acerca de la importancia de los programas del ICBF destinados a la Primera Infancia (PI), en términos de su alcance, cobertura, beneficios y pertinencia. A la luz de la literatura internacional, se discute la importancia de los programas de PI, la evidencia sobre los impactos de corto y largo plazo, las características de programas exitosos de PI, y las razones por las cuales los retornos a inversiones en capital humano durante la PI son más altos que otras inversiones similares a lo largo del ciclo de vida. Así mismo, se compara el diseño y cobertura de programas de PI en Colombia con programas similares en países en Latinoamérica. Se evalúa a nivel descriptivo la relación existente entre la cobertura de programas del ICBF a nivel municipal e indicadores de bienestar de la comunidad. Por otra parte, se presenta un análisis de la rentabilidad de los programas de PI en Colombia y una comparación de dichos programas con otras inversiones en capital humano en edades posteriores. Para establecer la importancia y relevancia de los programas de PI administrados por el ICBF se presentan algunas simulaciones de los costos en que incurriría el país si no se atendieran los niños que en la actualidad son beneficiarios de estos programas. Como ejercicios complementarios, se presentan también el análisis costo-beneficio del programa Hogares Comunitarios de Bienestar con base en la evaluación de impacto llevada a cabo por la Universidad de los Andes y Profamilia, y la evaluación de los programas del ICBF sobre variables de estado nutricional con base en la base de seguimiento nutricional METRIX.Primera Infancia, cuidado infantil, desarrollo cognitivo, nutrición

Aumento de la participación femenina en Colombia : ¿Fecundidad, estado civil o educación?

La participación laboral femenina en las zonas urbanas ha aumentado de manera sustancial en Colombia, y ha pasado de cerca del 47% en 1984 al 65% en 2006. Descomponemos el aumento en la participación en lo que corresponde a aumentos en la tasa de participación de los diferentes subgrupos (que se definen según las variables más relevantes, que son en este caso logro educativo, estado civil y fecundidad) y cambios en la composición de la población. El aumento en la participación está jalonado por el aumento en las tasas de participación de las mujeres que están casadas o en unión libre, y de mujeres de bajo nivel educativo. La fecundidad contribuye menos a explicar el fenómeno. Los cambios en la composición de la población por niveles educativos también explican una porción sustancial, mientras que el efecto de los cambios en la composición de la población en términos de estado civil o fecundidad es muy pequeño.Colombia has experienced a secular increase in the labor participation of urban women, going from nearly 47% in 1984 to 65% in 2006. We decompose the evolution of participation into changes in the composition of the population and changes in the participation rates by groups (defined according to the variables that appear most relevant: educational attainment, fertility and marital status). The increase in participation is driven by the increase in the participation rate of married or cohabiting women and women with low educational attainment. Fertility status appears to be less important. Changes in the population composition by educational attainment are also relevant in explaining the increase in participation. However, changes in composition by marital status or fertility are second order effects

Influence of sex, menstrual cycle, and hormonal contraceptives on egocentric navigation with or without landmarks

This study examines the influence of sex, menstrual cycle, hormonal contraceptives (HC) and sex hormone levels in following egocentric navigation instructions with or without landmarks. Estradiol seem to bias the reference frame for navigation during estrous cycle of female rats. However, previous studies in humans found no differences in overall navigation between women in their early follicular and mid-luteal menstrual cycle phases, whose performance was worse than that of men. Our study hypothesis was that the performance of women would be improved during the peri-ovulatory phase and would remain the same during placebo and active phases of HC users. The study included 21 men, 62 women with natural menstrual cycle (21 during early follicular phase, 20 during periovulatory phase, and 21 during mid-luteal phase), and 38 women that were receiving HC (13 during placebo phase and 25 during active phase). The men outperformed the women with a natural menstrual cycle when following egocentric instructions without landmarks. However, the women’s performance varied according to the phase of their menstrual cycle, differing from men during early follicular and mid-luteal phases but not during the peri-ovulatory phase. The use of HC also improved the performance of women to the extent that the difference with men disappeared. No differences were observed between HC-placebo and HC-active user groups during egocentric navigation without landmarks and among all groups during egocentric navigation with landmarks. Analysis of salivary hormones showed that testosterone levels were higher in men and that estradiol levels in women were higher during peri-ovulatory and mid-luteal phases and also in HC users. Progesterone levels were higher in women during the mid-luteal phase. These results appear compatible with beneficial effect of testosterone and estradiol on egocentric navigation without landmarks and with a block of this effect produced by progesterone