Informal jobs and underemployment in Colombia: Two sides of the same coin

José Ignacio Uribe García, Carlos Humberto Ortiz Quevedo, Gustavo Adolfo García Cruz

    Research output: Contribution to journalArticleResearchpeer-review

    11 Citations (Scopus)


    It is common to analyze deficiencies in employment quality by using the variables informal employment and underemployment. The former term is understood to capture the problem from the company perspective (demand) whereas the latter captures it from the worker perspective (supply). This paper examines how related those variables are to employment quality in the Colombian urban labor market. To do so, the determinants informal employment and underemployment are analyzed together using an econometric model that incorporates the correlation of the terms of error (bivariate probit model). A high correlation was found between the two variables and they, in turn, are related to low income levels, low educational levels, deficient work conditions, and low technological development sectors. This is the first paper on the Colombian labor market that analytically examines informal employment and underemployment together.
    Original languageEnglish
    Pages (from-to)211-241
    JournalCuadernos de Administracion
    Issue number37
    Publication statusPublished - 1 Sept 2008


    • Bivariate probit
    • Employment quality
    • Informal employment
    • Job demand
    • Job supply
    • Underemployment


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