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The Cost of Job Security Regulation: Evidence from Latin American Labor Markets

Author

Listed:
  • Carmen Pagés
  • James J. Heckman

Abstract

This paper documents the high level of job security protection in Latin American labor markets and analyzes its impacts on employment. The authors show that job security policies have a substantial impact on the level and the distribution of employment in Latin America. These policies reduce employment and promote inequality. The institutional organization of the labor market affects both employment and inequality.

Suggested Citation

  • Carmen Pagés & James J. Heckman, 2000. "The Cost of Job Security Regulation: Evidence from Latin American Labor Markets," IDB Publications (Working Papers) 1094, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:1094
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    References listed on IDEAS

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    1. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, vol. 34(4), pages 851-879, June.
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    11. Katharine G. Abraham & Susan N. Houseman, 1994. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," NBER Chapters,in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 59-94 National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Financial Crises & Structural Adjustement; Poverty; Workforce & Employment; Labor; labor markets; law; legislation; job security;

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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