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Pobreza e informalidad, ¿un dilema de causalidad reversa en la República Dominicana?
[Poverty and informality, a reverse causality dilemma in the Dominican Republic?]

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  • Rodríguez Núñez, Juan Bautista

Abstract

This paper analyzes the reverse causality between poverty and labor informality in the Dominican Republic, generating a profile that encompasses the socioeconomic and demographic factors of individuals to both poverty and labor informality. To that end, the National Labor Force Survey (Encuesta Nacional de Fuerza de Trabajo, ENFT), in the years 2010 and 2016, is used. Also, probabilistic regression models "Probit", with instrumental variables for the identification of causal effects. The results are consistent with previous literature, indicating that both poverty and informality have an explanatory effect on each other. In this sense, both phenomena are concentrated in the least educated groups, especially in rural areas.

Suggested Citation

  • Rodríguez Núñez, Juan Bautista, 2022. "Pobreza e informalidad, ¿un dilema de causalidad reversa en la República Dominicana? [Poverty and informality, a reverse causality dilemma in the Dominican Republic?]," MPRA Paper 115642, University Library of Munich, Germany, revised 10 Jul 2022.
    • Handle: RePEc:pra:mprapa:115642
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    File URL: https://mpra.ub.uni-muenchen.de/115642/1/MPRA_paper_115642.pdf
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    References listed on IDEAS

    as
    1. Loayza, Norman V. & Rigolini, Jamele, 2006. "Informality trends and cycles," Policy Research Working Paper Series 4078, The World Bank.
    2. Rodríguez Núñez, Juan Bautista & Guerra Salazar, Isaac Enmanuel, 2019. "Una Aplicación de la Descomposición Blinder–Oaxaca junto a regresiones por cuantiles de influencia recentrada al sector formal e informal y sus determinantes [An Application of the Blinder–Oaxaca D," MPRA Paper 115683, University Library of Munich, Germany.
    3. Loayza, Norman V., 1996. "The economics of the informal sector: a simple model and some empirical evidence from Latin America," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 45(1), pages 129-162, December.
    4. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    5. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
    6. Tokman, Víctor E., 1987. "El sector informal: Quince años después," El Trimestre Económico, Fondo de Cultura Económica, vol. 54(215), pages 513-536, julio-sep.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic development; labor economics; econometrics; job; poverty; Probit with instrumental variables; poverty; labor informality; National Labor Force Survey (ENFT).;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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