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Labor Market Regulation and Employment in the Caribbean

In: Law and Employment: Lessons from Latin America and the Caribbean

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Author Info

  • Andrew Downes
  • Nlandu Mamingi
  • Rose-Marie Belle Antoine

Abstract

This research project focuses on the demand side of the labor market by examining the impact which labor market regulations have had on employment creation in the English-speaking Caribbean countries of Barbados, Jamaica and Trinidad and Tobago. Although a recent IADB report on labor market reform in Latin America and the Caribbean indicates that the English-speaking Caribbean countries have a lower level of labor market inflexibility than Latin American countries, the regulatory environment in both the labor and commodity markets has had some adverse impact on employment creation in the region (IADB, 1996). Results from a study of the operations of the labor market in the Caribbean Group for Cooperation in Economic Development (CGCED) suggest that these regulatory measures do have some effect on the operation of businesses in the region (see Abt Associates, 1998).

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This chapter was published in:

  • James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1, January.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10077.

    Handle: RePEc:nbr:nberch:10077

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    1. Daniel S. Hamermesh & Gerard A. Pfann, 1996. "Adjustment Costs in Factor Demand," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1264-1292, September.
    2. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(1), pages 1-22, January.
    3. Campbell, John Y. & Shiller, Robert J., 1988. "Interpreting cointegrated models," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 12(2-3), pages 505-522.
    4. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(3), pages 699-726, August.
    5. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    6. Phillips, Peter C B & Loretan, Mico, 1991. "Estimating Long-run Economic Equilibria," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 58(3), pages 407-36, May.
    7. Lockwood, Ben & Manning, Alan, 1989. "Dynamic Wage-Employment Bargaining with Employment Adjustment Costs," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 99(398), pages 1143-58, December.
    8. Inder, Brett, 1993. "Estimating long-run relationships in economics : A comparison of different approaches," Journal of Econometrics, Elsevier, Elsevier, vol. 57(1-3), pages 53-68.
    9. Loayza, Norman & Palacios, Luisa, 1997. "Economic reform and progress in Latin America and the Caribbean," Policy Research Working Paper Series 1829, The World Bank.
    10. Gonzalo, Jesus & Lee, Tae-Hwy, 1998. "Pitfalls in testing for long run relationships," Journal of Econometrics, Elsevier, Elsevier, vol. 86(1), pages 129-154, June.
    11. Modesto, Leonor, 1994. "Dynamic Behaviour of Wages and Employment: A Bargaining Model Introducing Adjustment Costs," CEPR Discussion Papers 893, C.E.P.R. Discussion Papers.
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    Cited by:
    1. James Heckman & Carmen Pages, 2003. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Working Papers 10129, National Bureau of Economic Research, Inc.
    2. Herzer, Dierk, 2013. "Cross-Country Heterogeneity and the Trade-Income Relationship," World Development, Elsevier, vol. 44(C), pages 194-211.
    3. Daniel S. Hamermesh, 2004. "Labor Demand in Latin America and the Caribbean. What Does It Tell Us?," NBER Chapters, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 553-562 National Bureau of Economic Research, Inc.
    4. Carmen Pagés-Serra & James J. Heckman, 2000. "The Cost of Job Security Regulation: Evidence from Latin American Labor Markets," Research Department Publications 4227, Inter-American Development Bank, Research Department.
    5. Djankov, Simeon & Ramalho, Rita, 2009. "Employment laws in developing countries," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 3-13, March.

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