Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
Participation and Sector Selection in Nicaragua
() and Marco Ranzani
Abstract: This paper investigates the structure of the labor market
in Nicaragua and is aimed at understanding the determinants of the choice
between a number of segments, namely inactivity, unemployment, agriculture,
formal and informal sector. In addition, a model with a separate
participation equation is estimated: it allows understanding that age is
mainly a supply side factor, while education is an important element
determining employers’ choice. Information networks, captured by the
presence of a household member working in the formal sector, and
geographical barriers to mobility also play a leading role.
Keywords: Segmentation; Multisector labor markets; Nicaragua; (follow links to similar papers)
JEL-Codes: J42; O17; O54; (follow links to similar papers)
41 pages, May 15, 2009
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