Social Security Distortions onto the Labor Market : Estimates for Colombia
This paper identifies and quantifies three distortions caused by the existing social security and social assistance systems in Colombia. These distortions refer to the discrepancy between the cost of formal social security for the employer and the...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| 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_20100729132151 http://hdl.handle.net/10986/3874 |
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okr-10986-3874 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO HEALTH CARE AGGREGATE DEMAND ARMED CONFLICT BASIC SANITATION BUSINESS FAILURE CATEGORIES OF WORKERS CENSUS OF POPULATION CHILD LABOR CITIZENS CULTURAL CHANGE DISABILITIES DISCUSSIONS DISMISSAL DISPLACEMENT DRINKING WATER DROPOUT EARNING ECONOMIC GROWTH ECONOMIC SHOCK ECONOMIC SHOCKS ELDERLY EMPLOYEE EMPLOYMENT CREATION EMPLOYMENT HISTORY ENVIRONMENTAL DISASTERS FAMILIES FAMILY COMPOSITION FAMILY WELFARE HEALTH CARE HEALTH CARE SYSTEMS HEALTH INSURANCE HEALTH PROBLEMS HEALTH REFORM HOUSEHOLD INCOME HOUSEHOLD NUMBER HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL ILLNESS INCOME DISTRIBUTIONS INDIVIDUAL HEALTH INFORMAL SECTOR INJURIES INSURANCE SCHEMES INTERNAL MIGRATION INTERNATIONAL ECONOMIC CRISIS INTERNATIONAL LABOR ORGANIZATION INVENTORY JOB MARKET JOB TRAINING JOBS LABOR COSTS LABOR DISTRIBUTION LABOR EARNING LABOR MARKET LABOR MARKET REFORM LABOR MARKET RIGIDITIES LABOR MIGRATION LABOR ORGANIZATION LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR MARKET LABOUR MARKET POLICIES LARGE CITIES LIVING CONDITIONS MARGINAL COSTS MARKET EQUILIBRIUM MIGRATION MINIMUM WAGE MINIMUM WAGES MORTALITY NATIONAL DEVELOPMENT NATIONAL DEVELOPMENT PLAN NUMBER OF CHILDREN NUMBER OF HOUSEHOLDS OCCUPATION OCCUPATIONAL MOBILITY OCCUPATIONS OLD AGE OLD-AGE PAYROLL TAXES PENSIONS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER PRESENT VALUE PREVIOUS JOB PRODUCTIVITY PROGRESS PUBLIC HEALTH PUBLIC POLICY PUBLIC SERVICES QUALITY OF LIFE RESPECT RETIREMENT RIGHT TO HEALTH CARE SAFETY SAFETY NET SALARIED WORKER SALARIED WORKERS SERVICE PROVISION SERVICE QUALITY SEVERANCE PAY SEVERANCE PAYMENTS SOCIAL BENEFITS SOCIAL CONCERN SOCIAL EXPENDITURES SOCIAL POLICY SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SUPPORT SOCIOECONOMIC STATUS SPOUSE TOTAL UNEMPLOYMENT TRAINING PROGRAMS UNEMPLOYED UNEMPLOYED PEOPLE UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT FIGURES UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATES UNIONS URBAN POPULATION VULNERABILITY VULNERABLE GROUPS WAGE DIFFERENTIALS WAGE LEVEL WAGE LEVELS WORKER WORKERS WORKFORCE WORKING HOURS WORKING POPULATION WORKING-AGE POPULATION YOUNG PEOPLE |
| spellingShingle |
ACCESS TO HEALTH CARE AGGREGATE DEMAND ARMED CONFLICT BASIC SANITATION BUSINESS FAILURE CATEGORIES OF WORKERS CENSUS OF POPULATION CHILD LABOR CITIZENS CULTURAL CHANGE DISABILITIES DISCUSSIONS DISMISSAL DISPLACEMENT DRINKING WATER DROPOUT EARNING ECONOMIC GROWTH ECONOMIC SHOCK ECONOMIC SHOCKS ELDERLY EMPLOYEE EMPLOYMENT CREATION EMPLOYMENT HISTORY ENVIRONMENTAL DISASTERS FAMILIES FAMILY COMPOSITION FAMILY WELFARE HEALTH CARE HEALTH CARE SYSTEMS HEALTH INSURANCE HEALTH PROBLEMS HEALTH REFORM HOUSEHOLD INCOME HOUSEHOLD NUMBER HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL ILLNESS INCOME DISTRIBUTIONS INDIVIDUAL HEALTH INFORMAL SECTOR INJURIES INSURANCE SCHEMES INTERNAL MIGRATION INTERNATIONAL ECONOMIC CRISIS INTERNATIONAL LABOR ORGANIZATION INVENTORY JOB MARKET JOB TRAINING JOBS LABOR COSTS LABOR DISTRIBUTION LABOR EARNING LABOR MARKET LABOR MARKET REFORM LABOR MARKET RIGIDITIES LABOR MIGRATION LABOR ORGANIZATION LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR MARKET LABOUR MARKET POLICIES LARGE CITIES LIVING CONDITIONS MARGINAL COSTS MARKET EQUILIBRIUM MIGRATION MINIMUM WAGE MINIMUM WAGES MORTALITY NATIONAL DEVELOPMENT NATIONAL DEVELOPMENT PLAN NUMBER OF CHILDREN NUMBER OF HOUSEHOLDS OCCUPATION OCCUPATIONAL MOBILITY OCCUPATIONS OLD AGE OLD-AGE PAYROLL TAXES PENSIONS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER PRESENT VALUE PREVIOUS JOB PRODUCTIVITY PROGRESS PUBLIC HEALTH PUBLIC POLICY PUBLIC SERVICES QUALITY OF LIFE RESPECT RETIREMENT RIGHT TO HEALTH CARE SAFETY SAFETY NET SALARIED WORKER SALARIED WORKERS SERVICE PROVISION SERVICE QUALITY SEVERANCE PAY SEVERANCE PAYMENTS SOCIAL BENEFITS SOCIAL CONCERN SOCIAL EXPENDITURES SOCIAL POLICY SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SUPPORT SOCIOECONOMIC STATUS SPOUSE TOTAL UNEMPLOYMENT TRAINING PROGRAMS UNEMPLOYED UNEMPLOYED PEOPLE UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT FIGURES UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATES UNIONS URBAN POPULATION VULNERABILITY VULNERABLE GROUPS WAGE DIFFERENTIALS WAGE LEVEL WAGE LEVELS WORKER WORKERS WORKFORCE WORKING HOURS WORKING POPULATION WORKING-AGE POPULATION YOUNG PEOPLE Cuesta, Jose Olivera, Mauricio Social Security Distortions onto the Labor Market : Estimates for Colombia |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean South America America Colombia |
| relation |
Policy Research working paper ; no. WPS 5390 |
| description |
This paper identifies and quantifies
three distortions caused by the existing social security and
social assistance systems in Colombia. These distortions
refer to the discrepancy between the cost of formal social
security for the employer and the worker's valuation of
the received service (social distortion): the differences in
social security benefits received by salaried and
self-employed formal workers (occupational distortion); and
the discrepancy caused by the cost in employing a formal
instead of an informal worker (informal distortion). Based
on recently collected information concerning Colombian
workers' willingness to pay for several packages of
social security benefits, the study calculates that social
distortions range from 2 to 27 percent of the workers'
labor earnings; the occupational distortion amounts to 50
percent of formal salaried workers' earnings; and the
informal distortions represent between 45 and 56 percent of
formal workers' labor income. Results indicate that
valuations of the contributive and noncontributive
protection systems play a key role in explaining these
distortions. In addition, the Colombian social protection
system thereby places a hefty tax on the formal worker (and
employer) while transferring resources to the informal
worker, but these distortions are not sufficient to revert
differentials in earnings among formal and informal workers. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Cuesta, Jose Olivera, Mauricio |
| author_facet |
Cuesta, Jose Olivera, Mauricio |
| author_sort |
Cuesta, Jose |
| title |
Social Security Distortions onto the Labor Market : Estimates for Colombia |
| title_short |
Social Security Distortions onto the Labor Market : Estimates for Colombia |
| title_full |
Social Security Distortions onto the Labor Market : Estimates for Colombia |
| title_fullStr |
Social Security Distortions onto the Labor Market : Estimates for Colombia |
| title_full_unstemmed |
Social Security Distortions onto the Labor Market : Estimates for Colombia |
| title_sort |
social security distortions onto the labor market : estimates for 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_20100729132151 http://hdl.handle.net/10986/3874 |
| _version_ |
1764388782584365056 |
| spelling |
okr-10986-38742021-04-23T14:02:13Z Social Security Distortions onto the Labor Market : Estimates for Colombia Cuesta, Jose Olivera, Mauricio ACCESS TO HEALTH CARE AGGREGATE DEMAND ARMED CONFLICT BASIC SANITATION BUSINESS FAILURE CATEGORIES OF WORKERS CENSUS OF POPULATION CHILD LABOR CITIZENS CULTURAL CHANGE DISABILITIES DISCUSSIONS DISMISSAL DISPLACEMENT DRINKING WATER DROPOUT EARNING ECONOMIC GROWTH ECONOMIC SHOCK ECONOMIC SHOCKS ELDERLY EMPLOYEE EMPLOYMENT CREATION EMPLOYMENT HISTORY ENVIRONMENTAL DISASTERS FAMILIES FAMILY COMPOSITION FAMILY WELFARE HEALTH CARE HEALTH CARE SYSTEMS HEALTH INSURANCE HEALTH PROBLEMS HEALTH REFORM HOUSEHOLD INCOME HOUSEHOLD NUMBER HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN CAPITAL ILLNESS INCOME DISTRIBUTIONS INDIVIDUAL HEALTH INFORMAL SECTOR INJURIES INSURANCE SCHEMES INTERNAL MIGRATION INTERNATIONAL ECONOMIC CRISIS INTERNATIONAL LABOR ORGANIZATION INVENTORY JOB MARKET JOB TRAINING JOBS LABOR COSTS LABOR DISTRIBUTION LABOR EARNING LABOR MARKET LABOR MARKET REFORM LABOR MARKET RIGIDITIES LABOR MIGRATION LABOR ORGANIZATION LABOR RELATIONS LABOR SUPPLY LABOUR LABOUR MARKET LABOUR MARKET POLICIES LARGE CITIES LIVING CONDITIONS MARGINAL COSTS MARKET EQUILIBRIUM MIGRATION MINIMUM WAGE MINIMUM WAGES MORTALITY NATIONAL DEVELOPMENT NATIONAL DEVELOPMENT PLAN NUMBER OF CHILDREN NUMBER OF HOUSEHOLDS OCCUPATION OCCUPATIONAL MOBILITY OCCUPATIONS OLD AGE OLD-AGE PAYROLL TAXES PENSIONS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER PRESENT VALUE PREVIOUS JOB PRODUCTIVITY PROGRESS PUBLIC HEALTH PUBLIC POLICY PUBLIC SERVICES QUALITY OF LIFE RESPECT RETIREMENT RIGHT TO HEALTH CARE SAFETY SAFETY NET SALARIED WORKER SALARIED WORKERS SERVICE PROVISION SERVICE QUALITY SEVERANCE PAY SEVERANCE PAYMENTS SOCIAL BENEFITS SOCIAL CONCERN SOCIAL EXPENDITURES SOCIAL POLICY SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SUPPORT SOCIOECONOMIC STATUS SPOUSE TOTAL UNEMPLOYMENT TRAINING PROGRAMS UNEMPLOYED UNEMPLOYED PEOPLE UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT FIGURES UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATES UNIONS URBAN POPULATION VULNERABILITY VULNERABLE GROUPS WAGE DIFFERENTIALS WAGE LEVEL WAGE LEVELS WORKER WORKERS WORKFORCE WORKING HOURS WORKING POPULATION WORKING-AGE POPULATION YOUNG PEOPLE This paper identifies and quantifies three distortions caused by the existing social security and social assistance systems in Colombia. These distortions refer to the discrepancy between the cost of formal social security for the employer and the worker's valuation of the received service (social distortion): the differences in social security benefits received by salaried and self-employed formal workers (occupational distortion); and the discrepancy caused by the cost in employing a formal instead of an informal worker (informal distortion). Based on recently collected information concerning Colombian workers' willingness to pay for several packages of social security benefits, the study calculates that social distortions range from 2 to 27 percent of the workers' labor earnings; the occupational distortion amounts to 50 percent of formal salaried workers' earnings; and the informal distortions represent between 45 and 56 percent of formal workers' labor income. Results indicate that valuations of the contributive and noncontributive protection systems play a key role in explaining these distortions. In addition, the Colombian social protection system thereby places a hefty tax on the formal worker (and employer) while transferring resources to the informal worker, but these distortions are not sufficient to revert differentials in earnings among formal and informal workers. 2012-03-19T18:41:21Z 2012-03-19T18:41:21Z 2010-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100729132151 http://hdl.handle.net/10986/3874 English Policy Research working paper ; no. WPS 5390 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 |