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Slow Dynamics of Job Flow Rates in Colombian Industry

Author

Listed:
  • Alvaro Cháves

    (Escuela Colombiana de Ingeniería-Julio Garavito.)

  • Alejandro Mesa

    (Information Sciences Institute Emerging Markets)

  • Fernando Mesa

    (Consultor, Inteligencia Económica y Estratégica, BIOECOVAL)

Abstract

This study examines the creation and destruction of jobs in the Colombian industrial sector, at the establishment level. To achieve this purpose, the traditional academic literature on this issue is integrated with the most recent literature on the production factor shares in the product, which allows the analysis to be focused on market conditions. A close positive relationship is found between job flow rates and the labor income share in the product value, and a negative relationship with markups. The expected negative relationship between these job flow rates and the degree of concentration in the manufacturing sector markets is not obtained, given the low dynamics of changes that were registered in this sector. The above statistical relationships have strong implications for decisions in designing the labor market policies.The empirical analysis uses two econometric techniques, a static GMM and a dynamic Arellano-Bond with instrumental variables and fixed effects. Additionally, a robustness test is performed with a difference-in-differences model.

Suggested Citation

  • Alvaro Cháves & Alejandro Mesa & Fernando Mesa, 2023. "Slow Dynamics of Job Flow Rates in Colombian Industry," Coyuntura Económica, Fedesarrollo, vol. 53, pages 29-50.
    • Handle: RePEc:col:000438:021119
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    References listed on IDEAS

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    More about this item

    Keywords

    Firm Behavior and Empirical Analysis; Labor Demand; Market Structure; Size; Distribution of Firms Pa;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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