[Education and job market in urban areas in Colombia: a comparison between modern and nonmodern sectors]

Purpose of this study is to analyze the effect of education on economic development. In particular to study the effects of the level of schooling on urban workers engaged in what could be called for its technological characteristics and social organization the modern sector. These effects have great impact on the distribution of salaries and on occupational and sectorial mobility. 3200 interviews were conducted in large and in small cities. Average salaries in the modern sector of industry were higher than those in the nonmodern sector; productivity rates and levels of schooling were also higher. No sensible differences in salaries were observed if controlled by sex schooling and experience. 60% of manpower with less than primary school education was to be found in the nonmodern sectors of industry where only 20% of manpower had secondary school education. It must be noted that during the last 10 years there has been an enormous increase of female manpower into the labor force. The global effects of educational policies having as target the promotion of development must be related to the capability of generating jobs in the modern sector since it is the one which can productively absorb the more educated manpower.