IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Labor Market Regimes and Mobility through a Markov Chain in Chile

Listed author(s):
  • Ricardo Paredes
  • Victor Lima

In this paper we analyze the dynamics of labor markets in Chile. Our goal is to understand how flexibility in the labor market has changed over time, and in particular, to relate this change with the legislation framework. We analyze mobility in four different periods, each of them associated with different labor regimes. Based on flows, we estimate transition probabilities across three relevant possible states: unemployment, employment, and out of the labor force. Our finding shows that since 1974 employment became less secure. The probability for an employed person of becoming unemployed almost doubled since 1974 and remained thereafter. Also, the probability of remaining unemployed increased from 26,1% in the period 1962-73, to over 40% in the periods 1974-79 and 1980-89, but felt to 25,6% after 1990. This in spite the average unemployment rate doubled between these two periods. The probabilities related with discourage and added worker effects were stable in the different periods considered, except since 1990, where the hypothesis of discouraged workers is challenged. Finally, whilst the natural rate of unemployment doubled after the reforms in 1974, it remained high until the last period, starting in 1990. Changes in participation compensated such changes, and hence, the expected length of unemployment did not increase dramatically in the period, remaining stable around two quarters

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 317.

in new window

Date of creation: 11 Aug 2004
Handle: RePEc:ecm:latm04:317
Contact details of provider: Phone: 1 212 998 3820
Fax: 1 212 995 4487
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Claudio Sapelli, 1996. "Modelos para Pensar el Mercado de Trabajo: Una Revisión de la Literatura Chilena," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 33(99), pages 251-276.
  2. Alexis Camhi & Eduardo Engel & Alejandro Micco, 1997. "Dinámica de empleo y productividad en manufactura: Evidencia micro y consecuencias macro," Documentos de Trabajo 19, Centro de Economía Aplicada, Universidad de Chile.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ecm:latm04:317. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.