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The effects of labor legislation - act 789/2002 - about labor market in Colombia


  • Alexander Cotte Poveda



This paper analyzes the incidence of labor reform on labor market in Colombia after its implementation. Specifically, this work seeks to identify net effects of law on employment and unemployment rate. The general statement of the work makes reference to the importance of labor policy and its adjustments from time to time, on the different labor structures, primarily on labor demand and supply. Additionally, and based on a descriptive analysis, an approach to the major results of labor reform is included. It was found evidence in favor of the hypothesis according to which, Act 789/2002, failed to favor the most disadvantaged groups of population in those aspects related to the recent employment formalization; even more, the findings of this work lead to conclude that a proper formalization of employment has not been made in Colombia as suggested by labor reform.

Suggested Citation

  • Alexander Cotte Poveda, 2005. "The effects of labor legislation - act 789/2002 - about labor market in Colombia," Serie de Documentos en Economía y Violencia 003588, Centro de Investigaciones en Violencia, Instituciones y Desarrollo Económico (VIDE).
  • Handle: RePEc:col:000137:003588

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    Labor market;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand


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