Social Security Distortions onto the Labor Market : Estimates for Colombia

dc.creatorCuesta, Jose
dc.creatorOlivera, Mauricio
dc.date2012-03-19T18:41:21Z
dc.date2012-03-19T18:41:21Z
dc.date2010-07-01
dc.date.accessioned2026-07-01T01:08:59Z
dc.descriptionThis paper identifies and quantifies three distortions caused by the existing social security and social assistance systems in Colombia. These distortions refer to the discrepancy between the cost of formal social security for the employer and the worker's valuation of the received service (social distortion): the differences in social security benefits received by salaried and self-employed formal workers (occupational distortion); and the discrepancy caused by the cost in employing a formal instead of an informal worker (informal distortion). Based on recently collected information concerning Colombian workers' willingness to pay for several packages of social security benefits, the study calculates that social distortions range from 2 to 27 percent of the workers' labor earnings; the occupational distortion amounts to 50 percent of formal salaried workers' earnings; and the informal distortions represent between 45 and 56 percent of formal workers' labor income. Results indicate that valuations of the contributive and noncontributive protection systems play a key role in explaining these distortions. In addition, the Colombian social protection system thereby places a hefty tax on the formal worker (and employer) while transferring resources to the informal worker, but these distortions are not sufficient to revert differentials in earnings among formal and informal workers.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100729132151
dc.identifierhttps://hdl.handle.net/10986/3874
dc.identifierhttps://doi.org/10.1596/1813-9450-5390
dc.identifier.urihttp://hdl.handle.net/123456789/415612
dc.languageEnglish
dc.relationPolicy Research working paper ; no. WPS 5390
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectACCESS TO HEALTH CARE
dc.subjectAGGREGATE DEMAND
dc.subjectARMED CONFLICT
dc.subjectBASIC SANITATION
dc.subjectBUSINESS FAILURE
dc.subjectCATEGORIES OF WORKERS
dc.subjectCENSUS OF POPULATION
dc.subjectCHILD LABOR
dc.subjectCITIZENS
dc.subjectCULTURAL CHANGE
dc.subjectDISABILITIES
dc.subjectDISCUSSIONS
dc.subjectDISMISSAL
dc.subjectDISPLACEMENT
dc.subjectDRINKING WATER
dc.subjectDROPOUT
dc.subjectEARNING
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC SHOCK
dc.subjectECONOMIC SHOCKS
dc.subjectELDERLY
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT CREATION
dc.subjectEMPLOYMENT HISTORY
dc.subjectENVIRONMENTAL DISASTERS
dc.subjectFAMILIES
dc.subjectFAMILY COMPOSITION
dc.subjectFAMILY WELFARE
dc.subjectHEALTH CARE
dc.subjectHEALTH CARE SYSTEMS
dc.subjectHEALTH INSURANCE
dc.subjectHEALTH PROBLEMS
dc.subjectHEALTH REFORM
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD NUMBER
dc.subjectHOUSEHOLD SIZE
dc.subjectHOUSEHOLD SURVEY
dc.subjectHOUSEHOLD SURVEYS
dc.subjectHUMAN CAPITAL
dc.subjectILLNESS
dc.subjectINCOME DISTRIBUTIONS
dc.subjectINDIVIDUAL HEALTH
dc.subjectINFORMAL SECTOR
dc.subjectINJURIES
dc.subjectINSURANCE SCHEMES
dc.subjectINTERNAL MIGRATION
dc.subjectINTERNATIONAL ECONOMIC CRISIS
dc.subjectINTERNATIONAL LABOR ORGANIZATION
dc.subjectINVENTORY
dc.subjectJOB MARKET
dc.subjectJOB TRAINING
dc.subjectJOBS
dc.subjectLABOR COSTS
dc.subjectLABOR DISTRIBUTION
dc.subjectLABOR EARNING
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET REFORM
dc.subjectLABOR MARKET RIGIDITIES
dc.subjectLABOR MIGRATION
dc.subjectLABOR ORGANIZATION
dc.subjectLABOR RELATIONS
dc.subjectLABOR SUPPLY
dc.subjectLABOUR
dc.subjectLABOUR MARKET
dc.subjectLABOUR MARKET POLICIES
dc.subjectLARGE CITIES
dc.subjectLIVING CONDITIONS
dc.subjectMARGINAL COSTS
dc.subjectMARKET EQUILIBRIUM
dc.subjectMIGRATION
dc.subjectMINIMUM WAGE
dc.subjectMINIMUM WAGES
dc.subjectMORTALITY
dc.subjectNATIONAL DEVELOPMENT
dc.subjectNATIONAL DEVELOPMENT PLAN
dc.subjectNUMBER OF CHILDREN
dc.subjectNUMBER OF HOUSEHOLDS
dc.subjectOCCUPATION
dc.subjectOCCUPATIONAL MOBILITY
dc.subjectOCCUPATIONS
dc.subjectOLD AGE
dc.subjectOLD-AGE
dc.subjectPAYROLL TAXES
dc.subjectPENSIONS
dc.subjectPOLICY MAKERS
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RESEARCH WORKING PAPER
dc.subjectPRESENT VALUE
dc.subjectPREVIOUS JOB
dc.subjectPRODUCTIVITY
dc.subjectPROGRESS
dc.subjectPUBLIC HEALTH
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SERVICES
dc.subjectQUALITY OF LIFE
dc.subjectRESPECT
dc.subjectRETIREMENT
dc.subjectRIGHT TO HEALTH CARE
dc.subjectSAFETY
dc.subjectSAFETY NET
dc.subjectSALARIED WORKER
dc.subjectSALARIED WORKERS
dc.subjectSERVICE PROVISION
dc.subjectSERVICE QUALITY
dc.subjectSEVERANCE PAY
dc.subjectSEVERANCE PAYMENTS
dc.subjectSOCIAL BENEFITS
dc.subjectSOCIAL CONCERN
dc.subjectSOCIAL EXPENDITURES
dc.subjectSOCIAL POLICY
dc.subjectSOCIAL PROGRAMS
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIAL SECURITY
dc.subjectSOCIAL SUPPORT
dc.subjectSOCIOECONOMIC STATUS
dc.subjectSPOUSE
dc.subjectTOTAL UNEMPLOYMENT
dc.subjectTRAINING PROGRAMS
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYED PEOPLE
dc.subjectUNEMPLOYED WORKERS
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT FIGURES
dc.subjectUNEMPLOYMENT INSURANCE
dc.subjectUNEMPLOYMENT RATES
dc.subjectUNIONS
dc.subjectURBAN POPULATION
dc.subjectVULNERABILITY
dc.subjectVULNERABLE GROUPS
dc.subjectWAGE DIFFERENTIALS
dc.subjectWAGE LEVEL
dc.subjectWAGE LEVELS
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWORKFORCE
dc.subjectWORKING HOURS
dc.subjectWORKING POPULATION
dc.subjectWORKING-AGE POPULATION
dc.subjectYOUNG PEOPLE
dc.titleSocial Security Distortions onto the Labor Market : Estimates for Colombia

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