Labour Informality in Colombia's 13 Cities and Metropolitan Areas between 2019-2020

Abstract

Labour informality has major relevance on the world economy and Colombia is no exception; historically the country has been characterised by elevated rates of informality related to poverty indicator variables. The purpose of the document is to analyse this relation in the 13 main cities and metropolitan areas of Colombia, in the context of the COVID-19 pandemic. With this objective, the study performs a simple correlation analysis and a probit model that measures the impact of the variables that integrate the Multidimensional Poverty Index (MPI) and socio-demographic variables (age and gender) on the probability of being informally employed. The results expose that Monetary Poverty is the variable that has the most impact in this probability. Finally, this document highlights the importance of reducing informality in order to advance in the achievement of the national goals related to The 2030 Agenda for Sustainable Development.