Published in:
Revista CS (2022) Especial, Seite 173-219
Language:
Not determined
DOI:
10.18046/recs.iespecial.4939
ISSN:
2665-4814;
2011-0324
Origination:
Footnote:
Description:
The inequality in Colombia has been widely documented from different perspectives, but little is known about inequalities in the urban-rural context. This paper studies urban-rural inequality in the labor market using a Blinder-Oaxaca decomposition for labor income and characterization of rural and urban labor markets. We find that about 60 % of the urban-rural earnings gap is explained by observed worker factors such as educational level and age; the remaining 40 % is due to unobserved characteristics such as employer preferences, worker’s ability, etc. We identify three rural labor market conditions that explain and promote the urban-rural labor income gap: i) low female labor participation and high unemployment rates compared to their urban counterparts; ii) significantly higher labor informality that in urban areas; and iii) high incidence of child labor.