Labor Market Transitions and Social Security in Colombia

This paper quantifies the magnitude of transitions across occupational categories in Colombia, a country with high unemployment and informality but quickly increasing its social security coverage for health. The analysis makes use of a panel of hou...

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Main Authors: Cuesta, Jose, Bohorquez, Camilo
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
SEX
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110504090740
http://hdl.handle.net/10986/3413
id okr-10986-3413
recordtype oai_dc
spelling okr-10986-34132021-04-23T14:02:09Z Labor Market Transitions and Social Security in Colombia Cuesta, Jose Bohorquez, Camilo ACCOUNTING AGE GROUP BUSINESS CYCLE CHRONIC POVERTY CULTURAL CHANGE DEVELOPING COUNTRIES DEVELOPMENT POLICY DISCRIMINATION ECONOMIC DOWNTURNS ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC SHOCKS EMPLOYMENT INCREASES EMPLOYMENT RATES FAMILY LABOR FEMALE EDUCATION FEMALE LABOR GENDER DIFFERENCES GENDER GAP HEALTH CARE HEALTH INSURANCE HEALTH PROBLEMS HEALTH SERVICES HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATES HOUSEHOLD SIZE HOUSEHOLD SURVEY HUMAN DEVELOPMENT ILLNESS INCOME INCOME DISTRIBUTION INFORMAL EMPLOYMENT INFORMAL SECTOR INTERNAL MIGRATION INTERNATIONAL LABOR ORGANIZATION JOB SATISFACTION JOBS JOBS CRISIS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKET LABOR MARKET RIGIDITIES LABOR MARKET SEGMENTATION LABOR MARKETS LABOR ORGANIZATION LABOR SUPPLY LABOUR LABOUR MARKET LABOUR SUPPLY LACK OF AWARENESS MARITAL STATUS MINIMUM WAGES MOTIVATION NON-WAGE COSTS OCCUPATION OCCUPATIONAL CHOICE OCCUPATIONAL MOBILITY OCCUPATIONAL STATUS OCCUPATIONS PAYROLL TAXES PENSIONS POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER PREVIOUS JOB PREVIOUS OCCUPATION PREVIOUS RESULTS PRODUCTIVITY PROGRESS RESPECT RISK OF DEATH RURAL AREAS SALARIED WORKERS SECONDARY EDUCATION SEX SOCIAL BENEFITS SOCIAL POLICY SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL PROTECTION MECHANISMS SOCIAL SECURITY SOCIOECONOMIC STATUS SPOUSE SUBSTITUTION EFFECTS UNEMPLOYED UNEMPLOYED LABOR UNEMPLOYED PEOPLE UNEMPLOYED POOR UNEMPLOYMENT FIGURES UNEMPLOYMENT RATES UNPAID WORKERS WORK IN PROGRESS WORKER WORKING YOUTH UNEMPLOYMENT This paper quantifies the magnitude of transitions across occupational categories in Colombia, a country with high unemployment and informality but quickly increasing its social security coverage for health. The analysis makes use of a panel of households between 2008 and 2009, representative of the main metropolitan areas in the country. Results confirm previous evidence found in Colombia and elsewhere in the region that transitions between occupations are large and asymmetric: they are disproportionally more likely to happen from formal to informal occupations than vice versa. The paper finds for the first time that such transitions are also different for salaried workers compared with the self-employed, as well as by poverty status of the worker. Salaried workers are more likely to transition first into other salaried jobs, while self-employed are more likely to transition into unemployment or out of the labor force. There are marked differences in the profiles of transitioning and non-transitioning workers, both in terms of socioeconomic characteristics and social security coverage. Causal analysis shows that affiliation to social security on health deters occupational transitions, while pension insurance does not. Hence, high-volume transitions may not be crisis-specific phenomena, but rather associated with contributive and non-contributive social security mechanisms that incentivize informality, and workers' preferences for informal jobs. The debate on labor market and social security reforms needs to take these features of transitions into account. 2012-03-19T18:02:01Z 2012-03-19T18:02:01Z 2011-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110504090740 http://hdl.handle.net/10986/3413 English Policy Research working paper ; no. WPS 5650 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean South America America Colombia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
AGE GROUP
BUSINESS CYCLE
CHRONIC POVERTY
CULTURAL CHANGE
DEVELOPING COUNTRIES
DEVELOPMENT POLICY
DISCRIMINATION
ECONOMIC DOWNTURNS
ECONOMIC EFFICIENCY
ECONOMIC GROWTH
ECONOMIC SHOCKS
EMPLOYMENT INCREASES
EMPLOYMENT RATES
FAMILY LABOR
FEMALE EDUCATION
FEMALE LABOR
GENDER DIFFERENCES
GENDER GAP
HEALTH CARE
HEALTH INSURANCE
HEALTH PROBLEMS
HEALTH SERVICES
HIGH UNEMPLOYMENT
HIGH UNEMPLOYMENT RATES
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HUMAN DEVELOPMENT
ILLNESS
INCOME
INCOME DISTRIBUTION
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INTERNAL MIGRATION
INTERNATIONAL LABOR ORGANIZATION
JOB SATISFACTION
JOBS
JOBS CRISIS
LABOR DEMAND
LABOR ECONOMICS
LABOR FORCE
LABOR MARKET
LABOR MARKET RIGIDITIES
LABOR MARKET SEGMENTATION
LABOR MARKETS
LABOR ORGANIZATION
LABOR SUPPLY
LABOUR
LABOUR MARKET
LABOUR SUPPLY
LACK OF AWARENESS
MARITAL STATUS
MINIMUM WAGES
MOTIVATION
NON-WAGE COSTS
OCCUPATION
OCCUPATIONAL CHOICE
OCCUPATIONAL MOBILITY
OCCUPATIONAL STATUS
OCCUPATIONS
PAYROLL TAXES
PENSIONS
POLICY DISCUSSIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
PREVIOUS JOB
PREVIOUS OCCUPATION
PREVIOUS RESULTS
PRODUCTIVITY
PROGRESS
RESPECT
RISK OF DEATH
RURAL AREAS
SALARIED WORKERS
SECONDARY EDUCATION
SEX
SOCIAL BENEFITS
SOCIAL POLICY
SOCIAL PROGRAMS
SOCIAL PROTECTION
SOCIAL PROTECTION MECHANISMS
SOCIAL SECURITY
SOCIOECONOMIC STATUS
SPOUSE
SUBSTITUTION EFFECTS
UNEMPLOYED
UNEMPLOYED LABOR
UNEMPLOYED PEOPLE
UNEMPLOYED POOR
UNEMPLOYMENT FIGURES
UNEMPLOYMENT RATES
UNPAID WORKERS
WORK IN PROGRESS
WORKER
WORKING
YOUTH UNEMPLOYMENT
spellingShingle ACCOUNTING
AGE GROUP
BUSINESS CYCLE
CHRONIC POVERTY
CULTURAL CHANGE
DEVELOPING COUNTRIES
DEVELOPMENT POLICY
DISCRIMINATION
ECONOMIC DOWNTURNS
ECONOMIC EFFICIENCY
ECONOMIC GROWTH
ECONOMIC SHOCKS
EMPLOYMENT INCREASES
EMPLOYMENT RATES
FAMILY LABOR
FEMALE EDUCATION
FEMALE LABOR
GENDER DIFFERENCES
GENDER GAP
HEALTH CARE
HEALTH INSURANCE
HEALTH PROBLEMS
HEALTH SERVICES
HIGH UNEMPLOYMENT
HIGH UNEMPLOYMENT RATES
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HUMAN DEVELOPMENT
ILLNESS
INCOME
INCOME DISTRIBUTION
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INTERNAL MIGRATION
INTERNATIONAL LABOR ORGANIZATION
JOB SATISFACTION
JOBS
JOBS CRISIS
LABOR DEMAND
LABOR ECONOMICS
LABOR FORCE
LABOR MARKET
LABOR MARKET RIGIDITIES
LABOR MARKET SEGMENTATION
LABOR MARKETS
LABOR ORGANIZATION
LABOR SUPPLY
LABOUR
LABOUR MARKET
LABOUR SUPPLY
LACK OF AWARENESS
MARITAL STATUS
MINIMUM WAGES
MOTIVATION
NON-WAGE COSTS
OCCUPATION
OCCUPATIONAL CHOICE
OCCUPATIONAL MOBILITY
OCCUPATIONAL STATUS
OCCUPATIONS
PAYROLL TAXES
PENSIONS
POLICY DISCUSSIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
PREVIOUS JOB
PREVIOUS OCCUPATION
PREVIOUS RESULTS
PRODUCTIVITY
PROGRESS
RESPECT
RISK OF DEATH
RURAL AREAS
SALARIED WORKERS
SECONDARY EDUCATION
SEX
SOCIAL BENEFITS
SOCIAL POLICY
SOCIAL PROGRAMS
SOCIAL PROTECTION
SOCIAL PROTECTION MECHANISMS
SOCIAL SECURITY
SOCIOECONOMIC STATUS
SPOUSE
SUBSTITUTION EFFECTS
UNEMPLOYED
UNEMPLOYED LABOR
UNEMPLOYED PEOPLE
UNEMPLOYED POOR
UNEMPLOYMENT FIGURES
UNEMPLOYMENT RATES
UNPAID WORKERS
WORK IN PROGRESS
WORKER
WORKING
YOUTH UNEMPLOYMENT
Cuesta, Jose
Bohorquez, Camilo
Labor Market Transitions and Social Security in Colombia
geographic_facet Latin America & Caribbean
Latin America & Caribbean
South America
America
Colombia
relation Policy Research working paper ; no. WPS 5650
description This paper quantifies the magnitude of transitions across occupational categories in Colombia, a country with high unemployment and informality but quickly increasing its social security coverage for health. The analysis makes use of a panel of households between 2008 and 2009, representative of the main metropolitan areas in the country. Results confirm previous evidence found in Colombia and elsewhere in the region that transitions between occupations are large and asymmetric: they are disproportionally more likely to happen from formal to informal occupations than vice versa. The paper finds for the first time that such transitions are also different for salaried workers compared with the self-employed, as well as by poverty status of the worker. Salaried workers are more likely to transition first into other salaried jobs, while self-employed are more likely to transition into unemployment or out of the labor force. There are marked differences in the profiles of transitioning and non-transitioning workers, both in terms of socioeconomic characteristics and social security coverage. Causal analysis shows that affiliation to social security on health deters occupational transitions, while pension insurance does not. Hence, high-volume transitions may not be crisis-specific phenomena, but rather associated with contributive and non-contributive social security mechanisms that incentivize informality, and workers' preferences for informal jobs. The debate on labor market and social security reforms needs to take these features of transitions into account.
format Publications & Research :: Policy Research Working Paper
author Cuesta, Jose
Bohorquez, Camilo
author_facet Cuesta, Jose
Bohorquez, Camilo
author_sort Cuesta, Jose
title Labor Market Transitions and Social Security in Colombia
title_short Labor Market Transitions and Social Security in Colombia
title_full Labor Market Transitions and Social Security in Colombia
title_fullStr Labor Market Transitions and Social Security in Colombia
title_full_unstemmed Labor Market Transitions and Social Security in Colombia
title_sort labor market transitions and social security in colombia
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110504090740
http://hdl.handle.net/10986/3413
_version_ 1764386953060417536