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Determinants of Labor Demand in Colombia, 1976-1996

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  • 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.

Suggested Citation

  • Mauricio Cardenas & Raquel Bernal, 2001. "Determinants of Labor Demand in Colombia, 1976-1996," CID Working Papers 72A, Center for International Development at Harvard University.
    • Handle: RePEc:cid:wpfacu:72a
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    References listed on IDEAS

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    1. Eduardo Lora & Carmen Pagés-Serra, 1997. "La legislación laboral en el proceso de reformas estructurales de América Latina y el Caribe," Research Department Publications 4065, Inter-American Development Bank, Research Department.
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    More about this item

    Keywords

    labor demand; non-wage labor costs; labor legislation;
    All these keywords.

    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
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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