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Labor Fluidity and Performance of Labor Outcomes in Colombia: Evidence from Employer-Employee Linked Panel

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Abstract

In this paper, we compute standard measures of fluidity for the Colombian urban labor market: worker and job reallocation rates and the excess of worker reallocation over job reallocation. We analyze the period between the second semester of 2008 and the second semester of 2014, finding evidence of an increase of fluidity in the labor market, especially after 2010. We test the hypothesis of a positive effect of fluidity on different employment and occupation indexes using instrumental variables regression models that exploit the variation of labor results and fluidity measures between metropolitan areas and over time. We find robust and positive effects of fluidity on some labor market result indexes related to employment and occupation. To the best of our knowledge, a positive causal effect of fluidity on the performance of the labor market has not been documented for a developing economy.

Suggested Citation

  • Leonardo Fabio Morales & Daniel Medina, 2016. "Labor Fluidity and Performance of Labor Outcomes in Colombia: Evidence from Employer-Employee Linked Panel," Borradores de Economia 926, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:926
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    1. Franscisco javier Lasso V., 2011. "La dinámica del desempleo urbano en Colombia," BORRADORES DE ECONOMIA 008951, BANCO DE LA REPÚBLICA.
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    Citations

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    Cited by:

    1. Luz Adriana Flórez & Leonardo Morales Z & Daniel Medina & José Lobo C, 2017. "Labour flows across firm´s size, economic sectors and wages in Colombia: evidence from employer-employee linked panel," Borradores de Economia 1013, Banco de la Republica de Colombia.
    2. Luz A. Flórez & Karen L. Pulido-Mahecha & Mario A. Ramos-Veloza, 2018. "Okun´s law in Colombia: a non-linear cointegration," Borradores de Economia 1039, Banco de la Republica de Colombia.
    3. repec:col:000425:015829 is not listed on IDEAS
    4. Leonardo Fabio Morales & Carlos Medina, 2017. "Assessing the Effect of Payroll Taxes on Formal Employment: The Case of the 2012 Tax Reform in Colombia," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2017), pages 75-124, November.
    5. Leonardo Fabio Morales & José Lobo, 2017. "Estimating Vacancies from Firms’ Hiring behavior: The Case of a Developing Economy," Borradores de Economia 1017, Banco de la Republica de Colombia.
    6. repec:taf:uitjxx:v:32:y:2018:i:1:p:43-75 is not listed on IDEAS

    More about this item

    Keywords

    Labor market fluidity; unemployment; occupation.;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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