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Determinants of Labor Demand in Colombia, 1976-1996

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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.

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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    Keywords

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    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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