Informality, economic complexity, and internalization of rules
This research aimed to find out the relationship between informality and the internalization of the rules of behavior required for complexity in the economic system, as better knowledge is required for formalization policy to have a greater impact. We use the economic complexity index (ECI) for 2018...
- Autores:
-
Laguna, Marcen
Hernández, Iván
Godoy, Jesús María
- Tipo de recurso:
- Article of journal
- Fecha de publicación:
- 2023
- Institución:
- Universidad de Ibagué
- Repositorio:
- Repositorio Universidad de Ibagué
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.unibague.edu.co:20.500.12313/3835
- Acceso en línea:
- https://hdl.handle.net/20.500.12313/3835
- Palabra clave:
- Informality
Self-determination
Economic complexity
Internalization of institutional rules
Labor market
- Rights
- openAccess
- License
- http://purl.org/coar/access_right/c_abf2
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Informality, economic complexity, and internalization of rules |
| title |
Informality, economic complexity, and internalization of rules |
| spellingShingle |
Informality, economic complexity, and internalization of rules Informality Self-determination Economic complexity Internalization of institutional rules Labor market |
| title_short |
Informality, economic complexity, and internalization of rules |
| title_full |
Informality, economic complexity, and internalization of rules |
| title_fullStr |
Informality, economic complexity, and internalization of rules |
| title_full_unstemmed |
Informality, economic complexity, and internalization of rules |
| title_sort |
Informality, economic complexity, and internalization of rules |
| dc.creator.fl_str_mv |
Laguna, Marcen Hernández, Iván Godoy, Jesús María |
| dc.contributor.author.none.fl_str_mv |
Laguna, Marcen Hernández, Iván Godoy, Jesús María |
| dc.subject.proposal.eng.fl_str_mv |
Informality Self-determination Economic complexity Internalization of institutional rules Labor market |
| topic |
Informality Self-determination Economic complexity Internalization of institutional rules Labor market |
| description |
This research aimed to find out the relationship between informality and the internalization of the rules of behavior required for complexity in the economic system, as better knowledge is required for formalization policy to have a greater impact. We use the economic complexity index (ECI) for 2018 at the regional level in Colombia, which combines the country’s productive structure with the amount of knowledge and know-how embodied in the goods it produces. The informality measure we use is the individual’s a liation to social security (in particular health insurance), and we use a proxy of civic rule’s internalization as an inverse relation with tra c tickets. This research aimed to shed new light on public policy to improve formalization and its economic impact. First, we include a theory that includes both intrinsic and extrinsic motivation types. The self-determination theory or organismic integration theory proposes this theory. Second, we have argued that the motivation to formalize is intrinsic to greater cultural capacity. Individuals gradually internalize rules of behavior that have repercussions on social dynamics. Third, the composition and characteristics of the families in the study sample seem to show that some factors increase the propensity for informality. Our empirical analysis reveals that group of people with a lower educational level are the ones who are more likely to belong to the informal labor market. These results are consistent with the literature. Multivariate Probit regression was used to examine these factors. |
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2023 |
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2023-10-17T20:27:24Z |
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2023-07-14 |
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Artículo de revista |
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Laguna, M., Hernández, I., & Godoy, J. M. (2023). Informality, economic complexity, and internalization of rules. Frontiers in Sociology, 8. https://doi.org/10.3389/fsoc.2023.1163326 |
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2297-7775 |
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Laguna, M., Hernández, I., & Godoy, J. M. (2023). Informality, economic complexity, and internalization of rules. Frontiers in Sociology, 8. https://doi.org/10.3389/fsoc.2023.1163326 2297-7775 |
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https://hdl.handle.net/20.500.12313/3835 |
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eng |
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eng |
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Frontiers in Sociology |
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Adam, A., Garas, A., Katsaiti, M.-S., and Lapatinas, A. (2021). Economic complexity and jobs: an empirical analysis. Econ. Innov. New Technol. 32, 1–28. doi: 10.1080/10438599.2020.1859751 Ahmed, Z., Can, M., Sinha, A., Ahmad, M., Alvarado, R., Rjoub, H., et al. (2022). Investigating the role of economic complexity in sustainable development and environmental sustainability. Int. J. Sustain. Dev. World Ecol. 29, 771–783. doi: 10.1080/13504509.2022.2097330 Amorós, J. E., Cristi, O., and Naudé, W. (2021). Entrepreneurship and subjective well-being: does the motivation to start-up a firm matter? J. Bus. Res. 127, 389–398. doi: 10.1016/j.jbusres.2020.11.044 Arias, A., and Pena, I. (2010). The effect of entrepreneurs' motivation and the local economic environment on young venture performance. Int. J. Bus. Environ. 3, 38–56. doi: 10.1504/IJBE.2010.031269 Atalay, I., and Tanova, C. (2022). Opportunity entrepreneurship and subjective wellbeing: the role of psychological functioning. does individualism change this relationship? Appl. Res. Qual. Life 17, 1247–1267. doi: 10.1007/s11482-021-09962-2 Baker, N. F. (1939). Traffic tickets. Am. Inst. Crim. L. Criminol. 30, 386–403. doi: 10.2307/1137602 Bandeira Morais, M., Swart, J., and Jordaan, J. A. (2021). Economic complexity and inequality: Does regional productive structure affect income inequality in Brazilian states? Sustainability. 13, 1006. doi: 10.3390/su13021006 Bénabou, R., and Tirole, J. (2003). Intrinsic and extrinsic motivation. Rev. Econ. Stud. 70, 489–520. doi: 10.1111/1467-937X.00253 Boanada-Fuchs, A., and Fuchs, V. B. (2018). Towards a taxonomic understanding of informality. Int. Dev Plan. Rev. 40, 397–420. doi: 10.3828/idpr.2018.23 Boehm, C. (2012). Moral Origins: The Evolution of Virtue, Altruism, and Shame. New York, NY: Soft Skull Press. Can, B., and Can, M. (2022). “Examining the relationship between knowledge and well-being as values of a society: an empirical analysis for turkey,” in Regulating Human Rights, Social Security, and Socio-Economic Structures in a Global Perspective, eds E. Alaverdov, and M. Waseem Bari (Hershey, PA: IGI Global), 211–226. doi: 10.4018/978-1-6684-4620-1.ch013 Can, M., Brusselaers, J., and Mercan, M. (2022). The effect of export composition on energy demand: a fresh evidence in the context of economic complexity. Rev. Dev. Econ. 26, 687–703. doi: 10.1111/rode.12854 Chávez, J. C., Mosqueda, M. T., and Gómez-Zaldívar, M. (2017). Economic complexity and regional growth performance: evidence from the Mexican economy. Rev. Reg. Stud. 47, 201–219. doi: 10.52324/001c.8023 Chu, L. K., and Hoang, D. P. (2020). How does economic complexity influence income inequality? New evidence from international data. Econ. Anal. Policy 68, 44–57. doi: 10.1016/j.eap.2020.08.004 Corbacho, A., Fretes, V., and Lora, E. (2013). Recaudar no Basta: Los Impuestos Como Instrumento de Desarrollo. Washington, DC: Banco Interamericano de Desarrollo. Cortinovis, N., Xiao, J., Boschma, R., and Oort, F. G. (2017). Quality of government and social capital as drivers of regional diversification in Europe. J. Econ. Geogr. 17, 1208. doi: 10.1093/jeg/lbx001 Coscia, M., Cheston, T., and Hausmann, R. (2017). Institutions vs. Social Interactions in Driving Economic Convergence: Evidence from Colombia. doi: 10.2139/ssrn.2939678 Coscia, M., Neffke, F. M., and Hausmann, R. (2020). Knowledge diffusion in the network of international business travel. Nat. Hum. Behav. 4, 1011–1020. doi: 10.1038/s41562-020-0922-x Deléchat, C., and Medina, L. (2021). The Global Informal Workforce: Priorities for Inclusive Growth. Washington, DC: International Monetary Fund. Fernández, C., and Villar, L. (2017). Taxonomía de la informalidad en América Latina. Bogotá: Fedesarrollo. p. 70. Fritz, B. S., and Manduca, R. A. (2021). The economic complexity of US metropolitan areas. Reg. Stud. 55, 1311–1326. doi: 10.1080/00343404.2021.1884215 Gao, J., Jun, B., Pentland, A. Z., and Hidalgo, T. C. A. (2021). Spillovers across industries and regions in China's regional economic diversification. Reg. Stud. 55, 1–16. doi: 10.1080/00343404.2021.1883191 Ghosh, S., Doǧan, B., Can, M., Shah, M. I., and Apergis, N. (2023). Does economic structure matter for income inequality? Qual. Quan. 57, 2507–2527. doi: 10.1007/s11135-022-01462-1 Hart, K. (1970). 8. Small-scale entrepreneurs in Ghana and development planning. J. Dev. Stud. 6, 104–120. doi: 10.1080/00220387008421338 Hartmann, D., Guevara, M. R., Jara-Figueroa, C., Aristarán, M., and Hidalgo, C. A. (2017). Linking economic complexity, institutions, and income inequality. World Dev. 93, 75–93. doi: 10.1016/j.worlddev.2016.12.020 Hausmann, R., and Hidalgo, C. A. (2011). The network structure of economic output. Journal of economic growth, 16, 309–342. Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., and Simoes, A. (2014). The Atlas of Economic Complexity: Mapping Paths to Prosperity. Cambridge, MA: Mit Press. doi: 10.7551/mitpress/9647.001.0001 Hidalgo, C. A. (2021). Economic complexity theory and applications. Nat. Rev. Phys. 3, 113. doi: 10.1038/s42254-020-00275-1 Hidalgo, C. A., Balland, P.-A., Boschma, R., Delgado, M., Feldman, M., Frenken, K., et al. (2018). The principle of relatedness. Int. Conf. Complex Syst. 451–457. doi: 10.1007/978-3-319-96661-8_46 Hidalgo, C. A., and Hausmann, R. (2009). The building blocks of economic complexity. Proc. Nat. Acad. Sci. 106, 10570–10575. doi: 10.1073/pnas.0900943106 Hidalgo, C. A., Klinger, B., Barabási, A.-L., and Hausmann, R. (2007). The product space conditions the development of nations. Science 317, 482–487. doi: 10.1126/science.1144581 Holland, J. H., and Miller, J. H. (1991). Artificial adaptive agents in economic theory. Am. Econ. Rev. 81, 365–370. Hsiao, C. (2014). Analysis of Panel Data (3rd ed., Econometric Society Monographs). Cambridge: Cambridge University Press. doi: 10.1017/CBO9781139839327 Hummel, D. (2015). Traffic tickets: public safety concerns or budget building tools. Adm. Soc. 47, 298–319. doi: 10.1177/0095399714528178 Kumar, K. B., and Matsusaka, J. G. (2009). From families to formal contracts: an approach to development. J. Dev. Econ. 90, 106–119. doi: 10.1016/j.jdeveco.2008.10.001 León, D. D., and Cancino, C. A. (2014). De emprendimientos por necesidad a emprendimientos por oportunidad: casos rurales exitosos. Multinatl. Bus. Rev. 7, 48–56. Leyva, G., and Urrutia, C. (2023). Informal labor markets in times of pandemic. Rev. Econom. Dynam. 47, 158–185. Llisterri, J. J., Kantis, H., Angelelli, P., and Tejerina, L. (2006). Is Youth Entrepreneurship a Necessity or an Opportunity? Washington, DC: Inter.-American Development Bank. Lora, E. (2021). Pronósticos de empleo formal urbano. Rev. Econ. Rosario 24, 79–116. doi: 10.12804/revistas.urosario.edu.co/economia/a.10029 Lyubimov, I., Gvozdeva, M., Kazakova, M., and Nesterova, K. (2017). Economic complexity of Russian regions and their potential to diversify. J. New Econ. Assoc. 34, 94–122. doi: 10.31737/2221-2264-2017-34-2-4 Miller, J. H., Page, S. E., and Page, S. (2009). Complex Adaptive Systems. Princeton, NJ: Princeton university press. Misra, K. (2014). From formal-informal to emergent formalisation: fluidities in the production of urban waterscapes. Water Altern. 7, 15–34. Neffke, F., Henning, M., and Boschma, R. (2011). How do regions diversify over time? industry relatedness and the development of new growth paths in regions. Econ. Geogr. 87, 237–265. doi: 10.1111/j.1944-8287.2011.01121.x Pérez-Balsalobre, S., Llano Verduras, C., and Díaz-Lanchas, J. (2019). Measuring Subnational Economic Complexity: An Application with Spanish data. Seville: European Commission, Joint Research Centre (JRC). Puente, R., González Espitia, C. G., and Cervilla, M. A. (2019). Necessity entrepreneurship in Latin America: it's not that simple. Entrep. Reg. Dev. 31, 953–983. doi: 10.1080/08985626.2019.1650294 Ryan, R. M., and Deci, E. L. (2017). Self-determination Theory: Basic Psychological Needs in Motivation, Development, and Wellness. New York, NY: Guilford Publications. doi: 10.1521/978.14625/28806 Ryan, R. M., and Hawley, P. (2016). “Naturally good? basic psychological needs and the proximal and evolutionary bases of human benevolence,” in The Oxford Handbook of Hypo-egoic Phenomena, eds K. W. Brown, J. D. Creswell, and R. M. Ryan (New York, NY: Guilford Publications), 205–222. Salazar-Xirinachs, J. M., and Chacaltana, J. (2018). Políticas de Formalización en América Latina: Avances y Desafíos. Lima, OH: OIT. Uzawa, H. (1968). “Time preference, the consumption function, and optimal asset holdings,” in Value, Capital, and Growth: Papers in Honour of Sir John Hicks, ed J. N. Wolfe (Edinburgh: Edinburgh University Press), 485–504. Vu, T. V. (2020). Economic complexity and health outcomes: a global perspective. Soc. Sci. Med. 265. doi: 10.1016/j.socscimed.2020.113480 Welters, R., Mitchell, W., and Muysken, J. (2014). Self determination theory and employed job search. J. Econ. Psychol. 44, 34–44. doi: 10.1016/j.joep.2014.06.002 World-Bank (2018). Financial Inclusion is on the Rise, but Gaps Remain Global Index Database Shows. Washington, DC: World-Bank. |
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Laguna, Marcen11c6fd64-5120-4c20-9bd6-d584d0da8631-1Hernández, Iván17235374-6181-4f4e-b3e5-60e4936947d0-1Godoy, Jesús María3dd0c267-5b8b-4469-a878-c9bcfb9c47bb-12023-10-17T20:27:24Z2023-10-17T20:27:24Z2023-07-14This research aimed to find out the relationship between informality and the internalization of the rules of behavior required for complexity in the economic system, as better knowledge is required for formalization policy to have a greater impact. We use the economic complexity index (ECI) for 2018 at the regional level in Colombia, which combines the country’s productive structure with the amount of knowledge and know-how embodied in the goods it produces. The informality measure we use is the individual’s a liation to social security (in particular health insurance), and we use a proxy of civic rule’s internalization as an inverse relation with tra c tickets. This research aimed to shed new light on public policy to improve formalization and its economic impact. First, we include a theory that includes both intrinsic and extrinsic motivation types. The self-determination theory or organismic integration theory proposes this theory. Second, we have argued that the motivation to formalize is intrinsic to greater cultural capacity. Individuals gradually internalize rules of behavior that have repercussions on social dynamics. Third, the composition and characteristics of the families in the study sample seem to show that some factors increase the propensity for informality. Our empirical analysis reveals that group of people with a lower educational level are the ones who are more likely to belong to the informal labor market. These results are consistent with the literature. Multivariate Probit regression was used to examine these factors.application/pdfLaguna, M., Hernández, I., & Godoy, J. M. (2023). Informality, economic complexity, and internalization of rules. Frontiers in Sociology, 8. https://doi.org/10.3389/fsoc.2023.11633262297-7775https://hdl.handle.net/20.500.12313/3835engSuiza1318Frontiers in SociologyAdam, A., Garas, A., Katsaiti, M.-S., and Lapatinas, A. (2021). Economic complexity and jobs: an empirical analysis. Econ. Innov. New Technol. 32, 1–28. doi: 10.1080/10438599.2020.1859751Ahmed, Z., Can, M., Sinha, A., Ahmad, M., Alvarado, R., Rjoub, H., et al. (2022). Investigating the role of economic complexity in sustainable development and environmental sustainability. Int. J. Sustain. Dev. World Ecol. 29, 771–783. doi: 10.1080/13504509.2022.2097330Amorós, J. E., Cristi, O., and Naudé, W. (2021). Entrepreneurship and subjective well-being: does the motivation to start-up a firm matter? J. Bus. Res. 127, 389–398. doi: 10.1016/j.jbusres.2020.11.044Arias, A., and Pena, I. (2010). The effect of entrepreneurs' motivation and the local economic environment on young venture performance. Int. J. Bus. Environ. 3, 38–56. doi: 10.1504/IJBE.2010.031269Atalay, I., and Tanova, C. (2022). Opportunity entrepreneurship and subjective wellbeing: the role of psychological functioning. does individualism change this relationship? Appl. Res. Qual. Life 17, 1247–1267. doi: 10.1007/s11482-021-09962-2Baker, N. F. (1939). Traffic tickets. Am. Inst. Crim. L. Criminol. 30, 386–403. doi: 10.2307/1137602Bandeira Morais, M., Swart, J., and Jordaan, J. A. (2021). Economic complexity and inequality: Does regional productive structure affect income inequality in Brazilian states? Sustainability. 13, 1006. doi: 10.3390/su13021006Bénabou, R., and Tirole, J. (2003). Intrinsic and extrinsic motivation. Rev. Econ. Stud. 70, 489–520. doi: 10.1111/1467-937X.00253Boanada-Fuchs, A., and Fuchs, V. B. (2018). Towards a taxonomic understanding of informality. Int. Dev Plan. Rev. 40, 397–420. doi: 10.3828/idpr.2018.23Boehm, C. (2012). Moral Origins: The Evolution of Virtue, Altruism, and Shame. New York, NY: Soft Skull Press.Can, B., and Can, M. (2022). “Examining the relationship between knowledge and well-being as values of a society: an empirical analysis for turkey,” in Regulating Human Rights, Social Security, and Socio-Economic Structures in a Global Perspective, eds E. Alaverdov, and M. Waseem Bari (Hershey, PA: IGI Global), 211–226. doi: 10.4018/978-1-6684-4620-1.ch013Can, M., Brusselaers, J., and Mercan, M. (2022). The effect of export composition on energy demand: a fresh evidence in the context of economic complexity. Rev. Dev. Econ. 26, 687–703. doi: 10.1111/rode.12854Chávez, J. C., Mosqueda, M. T., and Gómez-Zaldívar, M. (2017). Economic complexity and regional growth performance: evidence from the Mexican economy. Rev. Reg. Stud. 47, 201–219. doi: 10.52324/001c.8023Chu, L. K., and Hoang, D. P. (2020). How does economic complexity influence income inequality? New evidence from international data. Econ. Anal. Policy 68, 44–57. doi: 10.1016/j.eap.2020.08.004Corbacho, A., Fretes, V., and Lora, E. (2013). Recaudar no Basta: Los Impuestos Como Instrumento de Desarrollo. Washington, DC: Banco Interamericano de Desarrollo.Cortinovis, N., Xiao, J., Boschma, R., and Oort, F. G. (2017). Quality of government and social capital as drivers of regional diversification in Europe. J. Econ. Geogr. 17, 1208. doi: 10.1093/jeg/lbx001Coscia, M., Cheston, T., and Hausmann, R. (2017). Institutions vs. Social Interactions in Driving Economic Convergence: Evidence from Colombia. doi: 10.2139/ssrn.2939678Coscia, M., Neffke, F. M., and Hausmann, R. (2020). Knowledge diffusion in the network of international business travel. Nat. Hum. Behav. 4, 1011–1020. doi: 10.1038/s41562-020-0922-xDeléchat, C., and Medina, L. (2021). The Global Informal Workforce: Priorities for Inclusive Growth. Washington, DC: International Monetary Fund.Fernández, C., and Villar, L. (2017). Taxonomía de la informalidad en América Latina. Bogotá: Fedesarrollo. p. 70.Fritz, B. S., and Manduca, R. A. (2021). The economic complexity of US metropolitan areas. Reg. Stud. 55, 1311–1326. doi: 10.1080/00343404.2021.1884215Gao, J., Jun, B., Pentland, A. Z., and Hidalgo, T. C. A. (2021). Spillovers across industries and regions in China's regional economic diversification. Reg. Stud. 55, 1–16. doi: 10.1080/00343404.2021.1883191Ghosh, S., Doǧan, B., Can, M., Shah, M. I., and Apergis, N. (2023). Does economic structure matter for income inequality? Qual. Quan. 57, 2507–2527. doi: 10.1007/s11135-022-01462-1Hart, K. (1970). 8. Small-scale entrepreneurs in Ghana and development planning. J. Dev. Stud. 6, 104–120. doi: 10.1080/00220387008421338Hartmann, D., Guevara, M. R., Jara-Figueroa, C., Aristarán, M., and Hidalgo, C. A. (2017). Linking economic complexity, institutions, and income inequality. World Dev. 93, 75–93. doi: 10.1016/j.worlddev.2016.12.020Hausmann, R., and Hidalgo, C. A. (2011). The network structure of economic output. Journal of economic growth, 16, 309–342.Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., and Simoes, A. (2014). The Atlas of Economic Complexity: Mapping Paths to Prosperity. Cambridge, MA: Mit Press. doi: 10.7551/mitpress/9647.001.0001Hidalgo, C. A. (2021). Economic complexity theory and applications. Nat. Rev. Phys. 3, 113. doi: 10.1038/s42254-020-00275-1Hidalgo, C. A., Balland, P.-A., Boschma, R., Delgado, M., Feldman, M., Frenken, K., et al. (2018). The principle of relatedness. Int. Conf. Complex Syst. 451–457. doi: 10.1007/978-3-319-96661-8_46Hidalgo, C. A., and Hausmann, R. (2009). The building blocks of economic complexity. Proc. Nat. Acad. Sci. 106, 10570–10575. doi: 10.1073/pnas.0900943106Hidalgo, C. A., Klinger, B., Barabási, A.-L., and Hausmann, R. (2007). The product space conditions the development of nations. Science 317, 482–487. doi: 10.1126/science.1144581Holland, J. H., and Miller, J. H. (1991). Artificial adaptive agents in economic theory. Am. Econ. 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