Abstract
Using the multinomial logit (MNL) models, this research has verified the heterogeneity of the urban informal employment sector and the significance of informal wage work for female workers in Lima; Peru. For the analysis of female labor supply, women aged 15-65 in Lima are disaggregated into the seven occupations: non-working, unpaid family work, domestic work, informal wage work, self-employment, formal private sector work, and formal public sector work. The theory of the new household economics is used to identify the determinants of women's labor market participation and occupation choice. The descriptive analysis shows that informal wage workers are young and the most educated workers are in the informal sector. The empirical analysis indicates that informal sector work is not homogeneous such that it creates different employment opportunities to female worker in Lima. The further research on informal wage work in urban area is critical to understand the gray area between formal and informal sectors, and the development of urban economy.
Highlights
The importance of integrating women into development policy has been stressed in academic and non-academic work for the last decade
By differentiating the estimated equation with respect to age, it can be observed that labor force participation is maximized in each occupation at a different age: 29.7 for unpaid family worker, 29.4 for domestic worker, 31.7 for informal wage worker, 39 for self-employed worker, 38.1 for formal prívate sector work, and 37 for formal public sector work
Empirical analysis of this research emphasizes the heterogeneity of the urban informal employment sector and the significance of informal wage work for female workers in Lima, Peru
Summary
The importance of integrating women into development policy has been stressed in academic and non-academic work for the last decade. The contribution of that research is not fully utilized in the empirical work Fixing these deficiencies of the previous research, this study creates and tests a multinomial logit (MNL) model with seven occupation choices: non-working, unpaid family work, domestic work, informal wage Work, self-employed work, formal private-sector work, and formal public-sector work. Whether or not unpaid family work is significantly different from not working is examined Besides these problems in model specification, it is of great interest to understand how having a primary man living with the woman in the same household affects her occupation choice. The general objective of tlús research is, to examine the characteristics of female workers in different occupations across the informal and formal sectors and to tesh·the significance of informal wage work as a woman's occupation choice. To examine the similarities between: (1) the occupations in the informal sector; (2) the occupations in the formal sector; (3) employee work; (4) non-employee work; (5) non-working and unpaid family work
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