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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Autores:
Laguna, Marcen
Hernández, Iván
Godoy, Jesús María
Tipo de recurso:
Article of investigation
Fecha de publicación:
2023
Institución:
Universidad de Ibagué
Repositorio:
Repositorio Universidad de Ibagué
Idioma:
eng
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oai:repositorio.unibague.edu.co:20.500.12313/5516
Acceso en línea:
https://hdl.handle.net/20.500.12313/5516
Palabra clave:
Colombia - Informalidad
Colombia - complejidad económica
Colombia - internalización de reglas
Economic complexity
Informality
Internalization of institutional rules
Labor market
Self-determination
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dc.title.eng.fl_str_mv Informality, economic complexity, and internalization of rules
title Informality, economic complexity, and internalization of rules
spellingShingle Informality, economic complexity, and internalization of rules
Colombia - Informalidad
Colombia - complejidad económica
Colombia - internalización de reglas
Economic complexity
Informality
Internalization of institutional rules
Labor market
Self-determination
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.armarc.none.fl_str_mv Colombia - Informalidad
Colombia - complejidad económica
Colombia - internalización de reglas
topic Colombia - Informalidad
Colombia - complejidad económica
Colombia - internalización de reglas
Economic complexity
Informality
Internalization of institutional rules
Labor market
Self-determination
dc.subject.proposal.eng.fl_str_mv Economic complexity
Informality
Internalization of institutional rules
Labor market
Self-determination
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.
publishDate 2023
dc.date.issued.none.fl_str_mv 2023
dc.date.accessioned.none.fl_str_mv 2025-08-21T21:44:03Z
dc.date.available.none.fl_str_mv 2025-08-21T21:44:03Z
dc.type.none.fl_str_mv Artículo de revista
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dc.identifier.citation.none.fl_str_mv Laguna, M., Hernández, I. y Godoy, J. (2023). Informality, economic complexity, and internalization of rules. Frontiers in Sociology, 8, 1163326. DOI: 10.3389/fsoc.2023.1163326
dc.identifier.doi.none.fl_str_mv 10.3389/fsoc.2023.1163326
dc.identifier.issn.none.fl_str_mv 22977775
dc.identifier.uri.none.fl_str_mv https://hdl.handle.net/20.500.12313/5516
identifier_str_mv Laguna, M., Hernández, I. y Godoy, J. (2023). Informality, economic complexity, and internalization of rules. Frontiers in Sociology, 8, 1163326. DOI: 10.3389/fsoc.2023.1163326
10.3389/fsoc.2023.1163326
22977775
url https://hdl.handle.net/20.500.12313/5516
dc.language.iso.none.fl_str_mv eng
language eng
dc.relation.citationstartpage.none.fl_str_mv 1163326
dc.relation.citationvolume.none.fl_str_mv 8
dc.relation.ispartofjournal.none.fl_str_mv Frontiers in Sociology
dc.relation.references.none.fl_str_mv 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.
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spelling Laguna, Marcen11c6fd64-5120-4c20-9bd6-d584d0da8631-1Hernández, Iván17235374-6181-4f4e-b3e5-60e4936947d0-1Godoy, Jesús María3dd0c267-5b8b-4469-a878-c9bcfb9c47bb-12025-08-21T21:44:03Z2025-08-21T21:44:03Z2023This 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.application/pdfLaguna, M., Hernández, I. y Godoy, J. (2023). Informality, economic complexity, and internalization of rules. Frontiers in Sociology, 8, 1163326. DOI: 10.3389/fsoc.2023.116332610.3389/fsoc.2023.116332622977775https://hdl.handle.net/20.500.12313/5516engFrontiers Media SASuiza11633268Frontiers 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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