Colombia Jobs Diagnostic : Structural Challenges for the Creation of More and Better Jobs
In mid-2020, the Government of Colombia launched a labor reform consultation process (Misión de Empleo) in response to a deterioration in pre-Covid19 employment indicators and changing economic and labor market conditions. Based on a comprehensive...
| Main Authors: | , , , |
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| Format: | Report |
| Language: | English |
| Published: |
Washington, DC: World Bank
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099030005052221996/P1735570ee75f10a30829a00c8fab980b17 http://hdl.handle.net/10986/37403 |
| Summary: | In mid-2020, the Government of
Colombia launched a labor reform consultation process
(Misión de Empleo) in response to a deterioration in
pre-Covid19 employment indicators and changing economic and
labor market conditions. Based on a comprehensive review of
Colombia’s labor market performance for the 2009-2019
period, this report seeks to provide analytical
underpinnings to this process. At the macro level, the
report shows that employment in Colombia is insufficiently
diversified relying almost exclusively on job creation in
the services sectors. This exposes the labor market to
cyclical changes in internal demand that are typical for
commodity rich economies like Colombia. At the worker level,
the report shows that the economy generates too few formal
employment opportunities for those with fewer skills and
those living in rural areas, implying low earnings, high
rates of self-employment, and high levels of informality. At
the firm level, the reports shows that the labor regulatory
regime has contributed to strong increases in labor costs
with important effects on entry and exit dynamics of firms
contributing to a compositional shift towards larger, more
capitalized, and more skill-intensive firms. |
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