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Macro Policy and Employment Problems in Latin America

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  • Eduardo Lora

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  • Mauricio Olivera

Abstract

This paper was prepared for the 1998 IDB/IIC Annual Meeting entitled: "The Employment in Latin America: What is the Problem and Should it be Addressed?" held in Cartagena, Colombia in March 1998. Despite macroeconomic stabilization and structural reforms, employment problems have persisted in Latin America. The 1990s have seen a slowdown in the rate of job creation, and unemployment rates have stagnated at about 10 percent. Informal sector employment has expanded, and increases in real wages have been particularly favorable to skilled workers. Economic cycles explain fluctuations in the employment and unemployment rates, while price stabilization and structural reforms have affected the composition of labor demand and relative wages.

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Bibliographic Info

Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4116.

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Date of creation: Mar 1998
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Handle: RePEc:idb:wpaper:4116

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References

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  1. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1999. "Winners and Losers from Utility Privatization in Argentina. Lessons from a General Equilibrium Model," UADE Working Papers 3_1999, Instituto de Economía, Universidad Argentina de la Empresa.
  2. Pierre-Richard Agenor & Joshua Aizenman, 1994. "Macroeconomic Adjustment with Segmented Labor Markets," NBER Working Papers 4769, National Bureau of Economic Research, Inc.
  3. Tan, Hong & Batra, Geeta, 1997. "Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)," World Bank Economic Review, World Bank Group, vol. 11(1), pages 59-83, January.
  4. Lindbeck, A. & Snower, D.J., 1990. "Segmented Labour Markets and Unemployment," Papers 483, Stockholm - International Economic Studies.
  5. J. David Richardson, 1995. "Income Inequality and Trade: How to Think, What to Conclude," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 33-55, Summer.
  6. Eduardo Fern·ndez-Arias & Peter Montiel, 2001. "Reform and Growth in Latin America: All Pain, No Gain?," IMF Staff Papers, Palgrave Macmillan, vol. 48(3), pages 5.
  7. Spilimbergo, Antonio & Londono, Juan Luis & Szekely, Miguel, 1999. "Income distribution, factor endowments, and trade openness," Journal of Development Economics, Elsevier, vol. 59(1), pages 77-101, June.
  8. Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
  9. Carmen Pagés-Serra & Gustavo Márquez, 1998. "Trade and Employment: Evidence from Latin America and the Caribbean," Research Department Publications 4108, Inter-American Development Bank, Research Department.
  10. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4301, Inter-American Development Bank, Research Department.
  11. Felix Fitzroy & Michael Funke, 1994. "Capital-Skill Complementarity in West German Manufacturing," CRIEFF Discussion Papers 9408, Centre for Research into Industry, Enterprise, Finance and the Firm.
  12. Karnit Flug & Zvi Hercowitz, 2000. "Equipment Investment and the Relative Demand for Skilled Labor: International Evidence," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(3), pages 461-485, July.
  13. Easterly, William & Loayza, Norman & Montiel, Peter, 1997. "Has Latin America's post-reform growth been disappointing?," Policy Research Working Paper Series 1708, The World Bank.
  14. de Wit, Gerrit, 1993. " Models of Self-Employment in a Competitive Market," Journal of Economic Surveys, Wiley Blackwell, vol. 7(4), pages 367-97, December.
  15. Gordon H. Hanson & Ann Harrison, 1995. "Trade, Technology, and Wage Inequality," NBER Working Papers 5110, National Bureau of Economic Research, Inc.
  16. Suzanne Duryea & Miguel Székely, 1998. "Labor Markets in Latin America: A Supply-Side Story," IDB Publications 6439, Inter-American Development Bank.
  17. Antonio Spilimbergo & Juan Luis Londoño & Miguel Székely, 1997. "Income Distribution, Factor Endowments, and Trade Openness," IDB Publications 6803, Inter-American Development Bank.
  18. Adrian Wood, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer.
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Citations

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Cited by:
  1. Samuel Freije, 2002. "El empleo informal en América Latina y el Caribe: Causas, consecuencias y recomendaciones de política," IDB Publications 53018, Inter-American Development Bank.
  2. Chen,Derek Hung Chiat & Ranaweera,Thilakaratna & Storozhuk, Andriy, 2004. "The RMSM-S+P : a minimal poverty module for the RMSM-X," Policy Research Working Paper Series 3304, The World Bank.
  3. Gustavo Márquez, 2000. "Labor Markets and Income Support: What Did We Learn from the Crises?," Research Department Publications 4219, Inter-American Development Bank, Research Department.
  4. Carmen Pagés-Serra, 1999. "Apertura, reforma y mercado de trabajo: La experiencia de una década de cambios estructurales en el Perú," Research Department Publications 4167, Inter-American Development Bank, Research Department.
  5. Diego E. Vacaflores, 2011. "Was Latin America Correct In Relying In Foreign Direct Investment To Improve Employment Rates?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
  6. César P. Bouillon, 2000. "Inequality and Mexico's Labor Market after Trade Reform," IDB Publications 53718, Inter-American Development Bank.
  7. Agenor, Pierre-Richard, 2002. "Macroeconomic adjustment and the poor : analytical issues and cross-country evidence," Policy Research Working Paper Series 2788, The World Bank.
  8. Stephen J. Kay & Barbara E. Kritzer, 2001. "Social security in Latin America: recent reforms and challenges," Economic Review, Federal Reserve Bank of Atlanta, issue Q1, pages 41-52.
  9. Carmen Pagés-Serra, 1999. "Opening, reform and the labor market: experience of a decade of structural changes in Peru," Research Department Publications 4166, Inter-American Development Bank, Research Department.
  10. Gustavo Márquez, 2000. "Mercados laborales y apoyo del ingreso: ¿Qué hemos aprendido de las crisis?," Research Department Publications 4220, Inter-American Development Bank, Research Department.
  11. César P. Bouillon, 2000. "Returns to Education, Sector Premiums, and Male Wage Inequality in Mexico," IDB Publications 51038, Inter-American Development Bank.

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