What is it about?
The paper identifies the determinants and the patterns of occupational mobility across the formal/informal employment divide. Cross-sectional analyses are applied to two samples (1,252 and 2,026 individuals) from two representative household surveys conducted in 2007 and 2012 in Bejaia, an east-central region of Algeria. There is a substantial wage gap regarding the formal/informal wage employment divide, which human capital theory explains better as for formal rather than informal employees who are subject to labor market segmentation. Second, a logistic regression captures the determinants of occupational mobility, which depend on the characteristics of individuals: age, gender, marital status and human capital. Last, a longitudinal analysis upon a cohort of 445 individuals surveyed in 2007 and 2012 highlights the patterns of occupational mobility; active individuals experience a change that improves or deteriorates their job position, while shifting in both directions across the formal and the informal sector as well as within the informal sector.
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Why is it important?
This is the first repeated cross-section and longitudinal analyses applied to informal employment in Algeria and perhaps to other developing countries.
Perspectives
The paper paves the way to a current pilot study on informal employment devoted to other provinces in Algeria as well as to a new survey in Bejaïa.
Philippe Adair
University Paris-Est Créteil. ERUDITE research team.
Read the Original
This page is a summary of: Labor market segmentation and occupational mobility in Algeria: Repeated cross-sectional and longitudinal analyses (2007 to 2012), Review of Development Economics, August 2018, Wiley,
DOI: 10.1111/rode.12519.
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