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Should I Stay Or Should I Go? Career Choices For Young Workers In Latin America

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  • Graciana Rucci
  • Fernando Saltiel
  • Sergio Urzúa

Abstract

This paper presents the first estimates of the returns to formal labor market experience and tenure in a developing country context. We take advantage of rich matched employer–employee data from Brazil and Chile, exploiting job displacement as a source of identification. We find positive returns to both dimensions in these countries, with larger returns to tenure in Brazil and larger returns to experience in Chile. Our findings suggest the more rigid Brazilian labor legislation may encourage firms to invest in young workers' specific skills. Chile's institutions, on the contrary, might promote the acquisition of general skills. (JEL J24, J31, M50)

Suggested Citation

  • Graciana Rucci & Fernando Saltiel & Sergio Urzúa, 2020. "Should I Stay Or Should I Go? Career Choices For Young Workers In Latin America," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1430-1449, July.
    • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:3:p:1430-1449
    DOI: 10.1111/ecin.12880
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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