Informal work along the business cycle

Evidence from Argentina

Datos Bibliográficos

ID16965456
AutoresJulien Albertini (Lyon 1 Université), Arthur Poirier (Le Mans Université, autor de correspondencia), Thepthida Sopraseuth (0000-0002-7458-0365, CY Cergy Paris Université)
Año2020
Volumen11
Número1
Fecha de publicación2020-11-19
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaIZA Journal of Development and Migration (JOURNAL)
Identificadores de la revistaISSN: 2520-1786 • E-ISSN: 2520-1786
EditorialWalter de Gruyter GmbH (PUBLISHER • DE)
DOI10.2478/izajodm-2020-0019
OpenAlexW3124211797
IdiomaEN
Citas recibidas2
Referencias citadas22

This article sheds light on the dynamics of the Argentine labor market, using quarterly data from the Argentine Labor Force Survey for the period 2003Q3 to 2020Q1. We examine quarterly transition rates in a four-state model with formal employment, informal employment, unemployment, and nonparticipation. We compute the contribution of each transition rate to fluctuations in unemployment and informality rates. We identify five stylized facts: (i) Nearly 40% of the fluctuations in the unemployment rate involves unemployment ins and outs from/to informal jobs. (ii) More than 40% of the fluctuations in informality rate are driven by the variance of the formalization rate (transition from informal to formal employment). (iii) Non-participation matters for the understanding of unemployment volatility but also for the comprehension of the volatility on informality. (iv) Regarding gender differences: transition involving non-participation matters more in the variance of female unemployment and informality rates than for their male counterparts. (v) The informal sector plays an important role as a stepping stone to formal jobs for both men and women. Our article provides empirical targets to discipline theoretical modeling of labor market dynamics with a sizeable shadow economy

Business cycle · Econometrics · Economic growth · Economics · Informal sector · Labour economics · Macroeconomics · Stylized fact · Unemployment · Unemployment rate · Employment and Welfare Studies · Gender, Labor, and Family Dynamics · Taxation and Compliance Studies