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Determinants of Labor Demand in Colombia. 1976-1996

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

Author

Listed:
  • Mauricio Cardenas
  • Raquel Bernal

Abstract

Colombia's unemployment rate rose to 20% during the late 1990s from less than 8% in 1994. This paper argues that this has been the result of high non-wage labor costs embodied in the legislation. The estimated own-wage labor demand elasticity is around -0.5, which implies that a reduction in those costs, while politically costly, can have a significant payoff in terms of equity and efficiency.
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Suggested Citation

  • Mauricio Cardenas & Raquel Bernal, 2004. "Determinants of Labor Demand in Colombia. 1976-1996," NBER Chapters, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 229-272, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:10071
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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