TY - JOUR
T1 - Urban wage gaps in Colombia and the impact of a national payroll tax policy
AU - Herrera-Idárraga, Paula
AU - Garlati-Bertoldi, Pablo Adrian
AU - Torres, Juan David
N1 - Publisher Copyright:
© 2021 Regional Studies Association.
PY - 2022
Y1 - 2022
N2 - In this paper we analyse the unintended effects of a national policy. We explore how national payroll taxes policies can explain changes in wage gaps between cities. To do so, we exploit a payroll tax reform implemented in 2012 in Colombia. Using monthly data between 2011 and 2014, we estimate the effect of this policy in the lower part of the income distribution, and in particular at a window around the minimum wage, relying on a triple-difference estimation. Our results suggest that national policies aimed at reducing informality can have important effects in reducing wage gaps across cities.
AB - In this paper we analyse the unintended effects of a national policy. We explore how national payroll taxes policies can explain changes in wage gaps between cities. To do so, we exploit a payroll tax reform implemented in 2012 in Colombia. Using monthly data between 2011 and 2014, we estimate the effect of this policy in the lower part of the income distribution, and in particular at a window around the minimum wage, relying on a triple-difference estimation. Our results suggest that national policies aimed at reducing informality can have important effects in reducing wage gaps across cities.
KW - city wage gaps
KW - economic development
KW - informality
KW - spatial effects of non-spatial policies
UR - http://www.scopus.com/inward/record.url?scp=85104701008&partnerID=8YFLogxK
U2 - 10.1080/00343404.2021.1908535
DO - 10.1080/00343404.2021.1908535
M3 - Article
AN - SCOPUS:85104701008
SN - 0034-3404
VL - 56
SP - 489
EP - 503
JO - Regional Studies
JF - Regional Studies
IS - 3
ER -
