A study on informality in Argentinean provinces

Congreso; Arnoldshain Seminar XVII; 2022

Regional differences in Argentina are very important. In this paper we analyse the main determinants of labour informality in the regional labour markets of Argentina with a macro approach. From a theoretical viewpoint, one may find two main perspectives: (a) a structuralist; and (b) an institutionalist view. GMM estimations highlight the importance of both approaches, finding evidence that active/inactive rate, the proportion of small firms, the proportion of public employees per 1.000 inhabitants and a more qualified labour force exert a negative influence on the regional informality rate, whereas the unemployment rate has a direct relationship with informality