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Formal Employment is a Consequence of Skill Diversity in Cities

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dc.contributor.eventThe Economics of Informality Conference 2018spa
dc.creatorChaparro, Juan Camilo
dc.creatorO'Clery, Neave
dc.date.accessioned2018-08-03T15:33:56Z
dc.date.available2018-08-03T15:33:56Z
dc.date.created2018-05-28
dc.date.issued2018
dc.description.abstractWhy do cities with larger populations in developing countries create relatively more formal employment? We build a model where skill diversity increases with working age population size, and urban agglomeration economies result from complementarities at the firm level between workers with diverse skills. Inactive, unemployed,or self-employed (informal) workers are gradually absorbed by firms as new sectors appear via an evolutionary process ofskill recombination by firms.The model makes four predictions: (1) faster firm entry in less complex sectors, (2) higher wages in more complex sectors, (3) relatively more formal employment in larger cities, and (4) faster formal employment growth in cities that have more of the skills needed in more complex sectors. Since skills are not observable, sector complexity is computed from sector diversity and ubiquity, and skill availability from inter-industry labor transitions. We find strong empirical support for all of the predictions when tested with social security data for Colombia for the period 2008-2015.eng
dc.format.mimetypeapplication/pdf
dc.identifier.doihttps://doi.org/10.48713/10336_18251
dc.identifier.urihttp://repository.urosario.edu.co/handle/10336/18251
dc.language.isoeng
dc.publisher.otherUniversidad del Rosario. Facultad de Economíaspa
dc.rightsAtribución-NoComercial-CompartirIgual 2.5 Colombiaspa
dc.rights.accesRightsinfo:eu-repo/semantics/openAccess
dc.rights.accesoAbierto (Texto Completo)spa
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/2.5/co/
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.reponamereponame:Repositorio Institucional EdocURspa
dc.subjectAglomeraciónspa
dc.subjectEmpleospa
dc.subjectHabilidadesspa
dc.subjectCiudadesspa
dc.subject.ddcEconomía laboral
dc.subject.keywordAgglomerationeng
dc.subject.keywordEmpploymenteng
dc.subject.keywordSkillseng
dc.subject.keywordCitieseng
dc.subject.lembEmpleospa
dc.subject.lembTrabajo y trabajadoresspa
dc.subject.lembCompetenciasspa
dc.subject.lembCongresos, conferencias, etc.spa
dc.titleFormal Employment is a Consequence of Skill Diversity in Citiesspa
dc.typeconferenceObjecteng
dc.type.hasVersioninfo:eu-repo/semantics/publishedVersion
dc.type.spaDocumento de conferenciaspa
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The Economics of Informality Conference 2018