Seminar "The impact of informality on earnings inequality: decompositions of quantile regressions" presented by Anna Lukyanova
Anna Lukyanova (Center for Labor Market Studies at Higher School of Economics) presented her research on the impact of informality on earnings inequality: decompositions of quantile regressions.
In this study, we investigate the impact of informality on earnings inequality in Russia using the RLMS-HSE data for 2000-2010. We apply decompositions based on the recentered influence functions of unconditional quantiles proposed by Fipro, Fortin and Lemieux (Fipro et al., 2009). Our results confirm the heterogeneity of informal employment with specific standing of workers without permanent job. Informality increases the earnings polarization widening the both tails of the distribution. This effect, albeit small, is statistically significant. Changes in structure and wage effects of informality did not have significant contribution to the decline in overall earnings inequality in 2000-2010, except for a group of workers without permanent job.
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