CEU eTD Collection (2013); Enriquez Chacon, Erika Vanesa: Earnings differentials: the case of internally displaced people in Medellin, Colombia

CEU Electronic Theses and Dissertations, 2013
Author Enriquez Chacon, Erika Vanesa
Title Earnings differentials: the case of internally displaced people in Medellin, Colombia
Summary This paper analyses discrimination in the labour market in Medellín, Colombia by comparing two groups. The first group includes IDPs, the second one contains natives and voluntary migrants. I chose Medellín for being the Colombian city with the highest arrival rate. I use the Blinder – Oaxaca earnings gap decomposition method to empirically test discrimination. The results show that non-displace workers’ mean log hourly earnings are 6.6% higher than those of displaced workers. This earnings gap is in part explained by differences in endowments but there is also a part due to differences in coefficients. The part explained by differences in endowments, indicates that differences in years of schooling, potential experience, number of children, and other variables included in the model, account for about 31.3% of the earnings gap. The part due to differences in coefficients (39.3% of earnings gap), measures the change in displaced worker’s earnings when applying the non-displaced population’s coefficients to the displaced worker’s characteristics. This unexplained difference between displaced and non-displaced workers, may be attributed to discrimination. These results indicate that Medellín needs a local strategy to integrate IDPs into their communities and the formal economy.
Supervisor Kemmerling, Achim
Department Public Policy MA
Full texthttps://www.etd.ceu.edu/2013/enriquez_erika.pdf

Visit the CEU Library.

© 2007-2021, Central European University