Education as a key to reduce spatial inequalities and informality in Argentinean regional labour markets

This paper assesses the effects of the individual educational capital on their odds to belong to the formal or informal labour market in Argentina. Using recent microdata that studies more than 11,000 workers we estimate a probit model that relates the probability of belonging to the formal or informal labour market depending on his/her years of schooling and other control variables. Our findings provide empirical evidence of the significant effect of making effective the legal minimum schooling years in order to reduce the informality rate and show that education policies could be used as a way of reducing regional inequalities in Argentina.