Market institutions, labor market dynamics, and productivity in Argentina during the 1990s
This paper addresses the effects of policy shocks and structural reforms on the dynamic behavior of manufacturing job flows and productivity in Argentina during the 1990s, and the contribution of job reallocation to productivity. The main findings are: (a) shocks to labor taxes have allocative effects, while financial shocks have aggregate effects; (b) import tariffs appear to protect obsolete jobs; (c) sectoral differences in labor intensity, openness, financial dependence and workers' strength shape the responses to shocks; (d) intra- and inter-sectoral reallocations contribute positively to productivity; and (e) trade liberalization and labor market flexibilization favor reallocation and creative destruction.
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Volume (Year): 7 (2004)
Issue (Month): 4 ()
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