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...

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Main Authors: Marcen Laguna, Iván Hernández, Jesús María Godoy
Format: Article
Language:English
Published: Frontiers Media S.A. 2023-07-01
Series:Frontiers in Sociology
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fsoc.2023.1163326/full
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author Marcen Laguna
Iván Hernández
Jesús María Godoy
author_facet Marcen Laguna
Iván Hernández
Jesús María Godoy
author_sort Marcen Laguna
collection DOAJ
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 affiliation to social security (in particular health insurance), and we use a proxy of civic rule's internalization as an inverse relation with traffic 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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spelling doaj.art-d3be02a26bf94c56b8544ce342f718e02023-07-15T03:09:37ZengFrontiers Media S.A.Frontiers in Sociology2297-77752023-07-01810.3389/fsoc.2023.11633261163326Informality, economic complexity, and internalization of rulesMarcen Laguna0Iván Hernández1Jesús María Godoy2Department of Economics, Universidad del Rosario, Bogotá, ColombiaFaculty of Economics and Business, Universidad de Ibagué, Ibagué, ColombiaFaculty of Economics and Business, Universidad de Ibagué, Ibagué, ColombiaThis 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 affiliation to social security (in particular health insurance), and we use a proxy of civic rule's internalization as an inverse relation with traffic 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.https://www.frontiersin.org/articles/10.3389/fsoc.2023.1163326/fullinformalityself-determinationeconomic complexityinternalization of institutional ruleslabor market
spellingShingle Marcen Laguna
Iván Hernández
Jesús María Godoy
Informality, economic complexity, and internalization of rules
Frontiers in Sociology
informality
self-determination
economic complexity
internalization of institutional rules
labor market
title 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_short Informality, economic complexity, and internalization of rules
title_sort informality economic complexity and internalization of rules
topic informality
self-determination
economic complexity
internalization of institutional rules
labor market
url https://www.frontiersin.org/articles/10.3389/fsoc.2023.1163326/full
work_keys_str_mv AT marcenlaguna informalityeconomiccomplexityandinternalizationofrules
AT ivanhernandez informalityeconomiccomplexityandinternalizationofrules
AT jesusmariagodoy informalityeconomiccomplexityandinternalizationofrules