IDEAS home Printed from https://ideas.repec.org/p/col/000561/020047.html
   My bibliography  Save this paper

Temporary employment, informality, poverty and inequality

Author

Listed:
  • Tapias, J.

Abstract

An essential tool in the fight against poverty is the generation of decent jobs through an equitable and inclusive labor market. To achieve this, two fronts of struggle must be addressed. The first is informality, which causes many workers in developing countries to have precarious working conditions and low incomes. The second refers to the misuse of temporary contracts. Temporary jobs are associated with instability and wage penalties. Therefore, a policy aimed at obtaining decent jobs to overcome poverty must include these two battlefronts. In this sense, a Computable General Equilibrium (CGE) model with temporary, permanent, and informal work is developing. We show some interesting relationships through the equations formulated so far. The future results of this work will be helpful to address and generate policies aimed at achieving decent jobs.

Suggested Citation

  • Tapias, J., 2021. "Temporary employment, informality, poverty and inequality," Documentos de trabajo - Alianza EFI 20047, Alianza EFI.
    • Handle: RePEc:col:000561:020047
    as

    Download full text from publisher

    File URL: https://alianzaefi.com/download/temporary-employment-informality-poverty-and-inequality/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mathieu Paquet & Luc Savard, 2009. "Impact of Informal Re-exports between Benin and Nigeria: A CGE analysis," Cahiers de recherche 09-14, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    2. Bosch, Mariano & Esteban-Pretel, Julen, 2012. "Job creation and job destruction in the presence of informal markets," Journal of Development Economics, Elsevier, vol. 98(2), pages 270-286.
    3. Arguello, Ricardo & Jimenez, Dora, 2015. "Dutch Disease, Informality, and Employment Intensity in Colombia," Conference papers 332597, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Cahuc, Pierre & Postel-Vinay, Fabien, 2002. "Temporary jobs, employment protection and labor market performance," Labour Economics, Elsevier, vol. 9(1), pages 63-91, February.
    5. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications - Books, The World Bank Group, number 6586.
    6. Francesca Castellani & Giulia Lotti & Nataly Obando, 2020. "Fixed or open-ended? Labor contract and productivity in the Colombian manufacturing sector," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 199-223, January.
    7. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    8. Stifel, David C. & Thorbecke, Erik, 2003. "A dual-dual CGE model of an archetype African economy: trade reform, migration and poverty," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 207-235, April.
    9. Costas Meghir & Renata Narita & Jean-Marc Robin, 2015. "Wages and Informality in Developing Countries," American Economic Review, American Economic Association, vol. 105(4), pages 1509-1546, April.
    10. Bussolo, Maurizio & Lay, Jann & van der Mensbrugghe, Dominique, 2005. "Structural Change and Poverty Reduction in Brazil: The Impact of the Doha Round," Conference papers 331338, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. repec:hal:spmain:info:hdl:2441/4ra95789n9nrr59b6lmini6tp is not listed on IDEAS
    12. Pierre Cahuc & Olivier Charlot & Franck Malherbet, 2016. "Explaining The Spread Of Temporary Jobs And Its Impact On Labor Turnover," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(2), pages 533-572, May.
    13. Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: a Honeymoon Effect?," Economic Journal, Royal Economic Society, vol. 117(521), pages 357-385, June.
    14. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages 270-295, June.
    15. Denis Cogneau & Anne-Sophie Robilliard, 2004. "Poverty Alleviation Policies in Madagascar: a Micro-Macro Simulation Model," Working Papers DT/2004/11, DIAL (Développement, Institutions et Mondialisation), revised Nov 2004.
    16. François Bourguignon & Maurizio Bussolo & Luis Pereira, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution," PSE-Ecole d'économie de Paris (Postprint) halshs-00754864, HAL.
    17. Maurizio, Roxana., 2016. "Non-standard forms of employment in Latin America : prevalence, characteristics and impacts on wages," ILO Working Papers 994906973402676, International Labour Organization.
    18. Hopenhayn, Hugo & Rogerson, Richard, 1993. "Job Turnover and Policy Evaluation: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 101(5), pages 915-938, October.
    19. Lina Marcela Osorio-Copete, 2016. "Reforma tributaria e informalidad laboral en Colombia: Un análisis de equilibrio general dinámico y estocástico," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 34(80), pages 126-145, June.
    20. Gabriel Ulyssea, 2018. "Firms, Informality, and Development: Theory and Evidence from Brazil," American Economic Review, American Economic Association, vol. 108(8), pages 2015-2047, August.
    21. Laura Atuesta & Geoffrey J.D. Hewings, 2013. "Economic Welfare Analysis Of The Legalization Of Drugs: A Cge Microsimulation Model For Colombia," Economic Systems Research, Taylor & Francis Journals, vol. 25(2), pages 190-211, March.
    22. Luca Tiberti & Martin Cicowiez & John Cockburn, 2018. "A Top-Down with Behaviour (TDB) Microsimulation Toolkit for Distributive Analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 11(2), pages 191-213.
    23. O Blanchard & A Landier, 2002. "The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France," Economic Journal, Royal Economic Society, vol. 112(480), pages 214-244, June.
    24. Pierre Cahuc & Olivier Charlot & Franck Malherbet, 2016. "Explaining The Spread Of Temporary Jobs And Its Impact On Labor Turnover," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57, pages 533-572, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bentolila, Samuel & Dolado, Juan J. & Jimeno, Juan F., 2019. "Dual Labour Markets Revisited," IZA Discussion Papers 12126, Institute of Labor Economics (IZA).
    2. Juan J. Dolado & Salvador Ortigueira & Rodolfo Stucchi, 2016. "Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 7(4), pages 421-459, November.
    3. Diego Daruich & Sabrina Di Addario & Raffaele Saggio, 2023. "The Effects of Partial Employment Protection Reforms: Evidence from Italy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2880-2942.
    4. Miguel JARAMILLO BAANANTE & Daniela CAMPOS UGAZ, 2023. "Revisiting the stepping‐stone hypothesis: Transitions from temporary to permanent contracts in Peru," International Labour Review, International Labour Organization, vol. 162(2), pages 199-221, June.
    5. Iva Tomic, 2020. "Employment protection reforms and labour market outcomes in the aftermath of the recession: Evidence from Croatia," Public Sector Economics, Institute of Public Finance, vol. 44(1), pages 3-39.
    6. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2019. "Employment Protection and Firm-Provided Training: Quasi-Experimental Evidence from a Labour Market Reform," IZA Discussion Papers 12773, Institute of Labor Economics (IZA).
    7. Le Barbanchon, Thomas. & Malherbet, Franck., 2013. "An anatomy of the French labour market : country case studies on labour market segmentation," ILO Working Papers 994814973402676, International Labour Organization.
    8. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2021. "Employment protection and firm-provided training in dual labour markets," Labour Economics, Elsevier, vol. 69(C).
    9. repec:ilo:ilowps:481497 is not listed on IDEAS
    10. Normann Rion, 2019. "Waiting for the Prince Charming: Fixed-Term Contracts as Stopgaps," PSE Working Papers halshs-02331887, HAL.
    11. Alonso-Borrego, César & Fernández-Villaverde, Jesús & Galdon-Sanchez, Jose Enrique, 2004. "Evaluating Labor Market Reforms: A General Equilibrium Approach," IZA Discussion Papers 1129, Institute of Labor Economics (IZA).
    12. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2018. "Employment Protection, Temporary Contracts and Firm-Provided Training: Evidence from Italy," IZA Discussion Papers 11339, Institute of Labor Economics (IZA).
    13. Jiménez, Bruno & Rendon, Silvio, 2023. "Does employment protection unprotect workers? The labor market effects of job reinstatements in Peru," Labour Economics, Elsevier, vol. 80(C).
    14. Pierre Cahuc & Pauline Carry & Franck Malherbet & Pedro S Martins, 2022. "Employment Effects of Restricting Fixed-Term Contracts: Theory and Evidence," Working Papers hal-03881622, HAL.
    15. Juan J. Dolado & Etienne Lalé & Nawid Siassi, 2021. "From dual to unified employment protection: Transition and steady state," Quantitative Economics, Econometric Society, vol. 12(2), pages 547-585, May.
    16. Pierre Cahuc & Pauline Carry & Franck Malherbet & Pedro S. Martins, 2023. "Spillover effects of employment protection," Nova SBE Working Paper Series wp655, Universidade Nova de Lisboa, Nova School of Business and Economics.
    17. Normann Rion, 2021. "Job creation in a dual labor market: a constructivist approach," Working Papers hal-03125344, HAL.
    18. Francesconi, Marco & Sonedda, Daniela, 2024. "Does Weaker Employment Protection Lower the Cost of Job Loss?," IZA Discussion Papers 17374, Institute of Labor Economics (IZA).
    19. Francesca Castellani & Giulia Lotti & Nataly Obando, 2020. "Fixed or open-ended? Labor contract and productivity in the Colombian manufacturing sector," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 199-223, January.
    20. Charlot, Olivier & Malherbet, Franck, 2013. "Education and employment protection," Labour Economics, Elsevier, vol. 20(C), pages 3-23.
    21. Holger Görg & Dennis Görlich, 2015. "Offshoring, wages and job security of temporary workers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(3), pages 533-554, August.

    More about this item

    Keywords

    Labor informality; temporary employment; poverty; inequality; macroeconomics.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000561:020047. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alianza EFI (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.