Study shows transmission of labor informality across Colombian regions

Research by Codess and Universidad Externado de Colombia indicates that labor informality spreads between municipalities, while formalization does not produce the same expansive effect.

The study examined the labor market in intermediate cities and their areas of influence. In Rionegro, Antioquia, informality rose 7.24 percentage points between 2018 and 2024, despite the area's economic dynamism. Only the integrated system between Bogotá and Sabana municipalities such as Chía, Zipaquirá and Facatativá shows a positive effect on the transmission of labor formalization. Effective social security coverage in intermediate cities remains near 74 %. The research highlights an informality gap exceeding 22 percentage points between men and women in rural zones. Codess and Universidad Externado recommend designing formalization policies with a differentiated territorial approach.

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