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Labor Market Regulation and Employment in the Caribbean

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

  • Andrew Downes
  • Nlandu Mamingi
  • Rose-Marie Belle Antoine

One of the major economic challenges facing the Caribbean is the generation of employment opportunities to reduce the high levels of unemployment experienced primarily among the young and female segments of the workforce. An analysis of unemployment requires an examination of both the supply and demand sides of the labor market. This research project focuses on the demand side of the labor market by examining the impact which labor market regulations have had on employment creation in the English-speaking Caribbean countries of Barbados, Jamaica and Trinidad and Tobago. The main objectives of this research project are to i) document the range of labor market regulations existing in the three English-speaking members of the IADB; ii) identify the costs implications of such regulations; iii) empirically determine the impact which such measures have on employment determination, using econometric methods.

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This chapter was published in:
  • James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1, July.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10077.
    Handle: RePEc:nbr:nberch:10077
    Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
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    1. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    2. Modesto, Leonor, 1994. "Dynamic Behaviour of Wages and Employment: A Bargaining Model Introducing Adjustment Costs," CEPR Discussion Papers 893, C.E.P.R. Discussion Papers.
    3. Gonzalo, J. & Lee, T.H., 1995. "Pitfalls in Testing for Long Run Relationships," Papers 38, Boston University - Department of Economics.
    4. Campbell, John Y. & Shiller, Robert J., 1988. "Interpreting cointegrated models," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 505-522.
    5. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 1-22, January.
    6. Lockwood, Ben & Manning, Alan, 1989. "Dynamic Wage-Employment Bargaining with Employment Adjustment Costs," Economic Journal, Royal Economic Society, vol. 99(398), pages 1143-58, December.
    7. Daniel S. Hamermesh & Gerard A. Pfann, 1996. "Adjustment Costs in Factor Demand," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1264-1292, September.
    8. Peter C.B. Phillips & Mico Loretan, 1989. "Estimating Long Run Economic Equilibria," Cowles Foundation Discussion Papers 928, Cowles Foundation for Research in Economics, Yale University.
    9. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
    10. Loayza, Norman & Palacios, Luisa, 1997. "Economic reform and progress in Latin America and the Caribbean," Policy Research Working Paper Series 1829, The World Bank.
    11. Inder, Brett, 1993. "Estimating long-run relationships in economics : A comparison of different approaches," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 53-68.
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