%0 Journal Article 
%T Informality and minimum wages by cohort in Colombia
%D 2014
%@ 0121-4772
%U http://hdl.handle.net/10906/78316
%X 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 minimum wage-has not only a disincentive effect on the probability of joining informality, but also leads to a substitution effect between younger and older cohorts.
%~ GOEDOC, SUB GOETTINGEN