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Impacts of Labor Market Institutions and Demographic Factors on Labor Markets in Latin America
This paper documents recent labor market performance in the Latin American region. The paper shows that unemployment, informality, and inequality have been falling over the past two decades, though still remain high. By contrast, productivity has remained stubbornly low. The paper, then, turns to the potential impacts of various labor market institutions, including employment protection legislation (EPL), minimum wages (MW), payroll taxes, unemployment insurance (UI) and collective bargaining, as well as the impacts of demographic changes on labor market performance. The paper relies on evidence from carefully conducted studies based on micro-data for countries in the region and for other co...
Labor Market Effects of Payroll Taxes in Developing Countries
We use a panel of manufacturing plants from Colombia to analyze how the rise in payroll tax rates over the 1980s and 1990s affected the labor market. Our estimates indicate that formal wages fall by between 1.4% and 2.3% as a result of a 10% rise in payroll taxes. This "less-than-full-shifting" is likely to be the result of weak linkages between benefits and taxes and the presence of downward wage rigidities in Colombia. Because the costs of taxation are only partly shifted from employers to employees, employment also falls. Our results indicate that a 10% increase in payroll taxes lowered formal employment by between 4% and 5%. In addition, we find some evidence of less shifting and larger disemployment effects for production than for non-production workers. These results suggest that policies aimed at boosting the relative demand of less-skill workers by reducing social security taxes may be effective in Latin American countries, where minimum wages bind and benefits are often not directly linked to contributions.
Effects of Low-skilled Immigration on U.S. Natives
In the 1980s the composition of immigrants to the U.S. shifted towards less-skilled workers. Around this time, real wages and employment of younger and less-educated U.S. workers fell. Some blame recent immigration shifts for the misfortunes of unskilled workers in the U.S. OLS estimates using Census data show instead that native wages are positively related to the recent influx of Latin Americans. However, these estimates are biased if demand shocks are positively related to immigration. An IV strategy, which deals with the endogeneity of immigration by exploiting a large influx of Central American immigrants towards U.S. Southern ports of entry after Hurricane Mitch, also generates positiv...
Law and Employment
Law and Employment analyzes the effects of regulation and deregulation on Latin American labor markets and presents empirically grounded studies of the costs of regulation. Numerous labor regulations that were introduced or reformed in Latin America in the past thirty years have had important economic consequences. Nobel Prize-winning economist James J. Heckman and Carmen Pagés document the behavior of firms attempting to stay in business and be competitive while facing the high costs of complying with these labor laws. They challenge the prevailing view that labor market regulations affect only the distribution of labor incomes and have little or no impact on efficiency or the performance ...
Cross-border Human Resources, Labor and Employment Issues
This important theme was the focus of New York University's 54th Annual Conference on Labor and Employment Law. This highly significant book reprints the papers presented at the 54th Conference, with several additional papers. In its pages more than 40 noted labor and employment experts from a diverse range of countries and disciplines offer penetrating analyses of developments and trends in such areas as the following: - Regulation of immigrant labor; - legal issues facing undocumented workers; - labor markets in border regions; - guest worker programs; - extraterritorial applications of U.S.
The Paradox of Violence in Venezuela
Crime and violence soared in twenty-first-century Venezuela even as poverty and inequality decreased, contradicting the conventional wisdom that these are the underlying causes of violence. The Paradox of Violence in Venezuela explains the rise of violence under both Hugo Chávez and Nicolás Maduro—leftist presidents who made considerable investment in social programs and political inclusion. Contributors argue that violence arose not from the frustration of inequality, or the needs created by poverty, but rather from the interrelated factors of a particular type of revolutionary governance, extraordinary oil revenues, a reliance on militarized policing, and the persistence of concentrated disadvantage. These factors led to dramatic but unequal economic growth, massive institutional and social change, and dysfunctional criminal justice policies that destabilized illicit markets and social networks, leading to an increase in violent conflict resolution. The Paradox of Violence in Venezuela reorients thinking about violence and its relationship to poverty, inequality, and the state.
Handbook of Emerging Economies
A major new volume in the Routledge International Handbooks series analysing emerging and newly emerged economies, including the BRICS countries (Brazil, Russia, India, China and South Africa) and other likely (Turkey, Indonesia, Mexico, and South Korea) as well as possible (Vietnam, The Philippines, Nigeria, Pakistan, Egypt, Colombia and Argentina) candidates for emerging economy status. Chapters on theories surrounding emerging markets (including the Beijing/Washington Consensus debate) offer an overview of current issues in development economics, in addition to providing an integrated framework for the country case studies. Written by experts, this handbook will be invaluable to academics and students of economics and emerging economies, as well as to business people and researchers seeking information on economic development and the accelerating pace of globalization.
