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Determinants of labor demand in the Colombian manufacturing sector, 2000-2010


  • Jesús Rodríguez


This paper studies the determinants of labor demand for professional, administrative and blue-collar workers in the Colombian manufacturing sector. The results show that the demand for blue-collar employees exhibits the largest adjustment time and is the most sensitive to changes in total labor costs. These results suggest that policies aimed at reducing nonwage costs may be effective to raise the demand for low skilled workers. Finally, the short-run (long-run) demand for professional (administrative) workers is found to be the most sensitive to changes in production.

Suggested Citation

  • Jesús Rodríguez, 2013. "Determinants of labor demand in the Colombian manufacturing sector, 2000-2010," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 79, pages 45-72.
  • Handle: RePEc:lde:journl:y:2013:i:79:p:45-72

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    labor demand; average adjustment time; labor-output elasticity; factor substitution elasticity;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General


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