Job Creation and Labor Reform in Latin America

This paper studies the effects of labor-regulation reform using data for 10,396 firms from 14 Latin American countries. Firms are asked both how many permanent workers they would have hired and how many they would have terminated if labor regulatio...

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Main Author:	Kaplan, David S.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGGREGATE EMPLOYMENT AGGREGATE PRODUCTIVITY COLLECTIVE BARGAINING CREATIVE DESTRUCTION DISMISSAL DISMISSALS DISPLACED WORKER DISPLACED WORKERS DISPLACEMENT EARNINGS LOSSES ECONOMICS EMPLOYEE EMPLOYEE TURNOVER EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT INCREASES EMPLOYMENT STATISTICS FIRING FIRING COSTS FIRM LEVEL FIRM SIZE FIRM TURNOVER FLEXIBLE LABOR MARKETS HIRING INFORMAL ECONOMIES INFORMAL ECONOMY JOB CREATION JOB DESTRUCTION JOB MARKET JOB ROTATION JOB SECURITY JOB SECURITY REGULATION JOB SECURITY REGULATIONS JOB TURNOVER JOBS LABOR DEMAND LABOR LEGISLATION LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INDICATOR LABOR MARKET POLICY LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOR TURNOVER LATIN AMERICAN MINIMUM WAGES NET EMPLOYMENT NET EMPLOYMENT GAINS PERMANENT EMPLOYMENT PERMANENT JOB PERMANENT JOBS PERMANENT WORKERS PREVIOUS RESULTS PREVIOUS SECTION PRIVATE SECTOR PRODUCTIVITY EFFECTS PRODUCTIVITY GAINS RETAIL TRADE RIGID LABOR MARKET RIGID LABOR MARKETS SEASONAL WORKERS SOCIAL PROTECTION TEMPORARY JOBS TEMPORARY WORKERS TERMINATION TOTAL EMPLOYMENT TOTAL WORKER UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNIONS WORK IN PROGRESS WORKER WORKING
Online Access:	http://documents.worldbank.org/curated/en/2008/09/9817220/job-creation-labor-reform-latin-america http://hdl.handle.net/10986/6774

id	okr-10986-6774
recordtype	oai_dc
spelling	okr-10986-67742021-04-23T14:02:32Z Job Creation and Labor Reform in Latin America Kaplan, David S. AGGREGATE EMPLOYMENT AGGREGATE PRODUCTIVITY COLLECTIVE BARGAINING CREATIVE DESTRUCTION DISMISSAL DISMISSALS DISPLACED WORKER DISPLACED WORKERS DISPLACEMENT EARNINGS LOSSES ECONOMICS EMPLOYEE EMPLOYEE TURNOVER EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT INCREASES EMPLOYMENT STATISTICS FIRING FIRING COSTS FIRM LEVEL FIRM SIZE FIRM TURNOVER FLEXIBLE LABOR MARKETS HIRING INFORMAL ECONOMIES INFORMAL ECONOMY JOB CREATION JOB DESTRUCTION JOB MARKET JOB ROTATION JOB SECURITY JOB SECURITY REGULATION JOB SECURITY REGULATIONS JOB TURNOVER JOBS LABOR DEMAND LABOR LEGISLATION LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INDICATOR LABOR MARKET POLICY LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOR TURNOVER LATIN AMERICAN MINIMUM WAGES NET EMPLOYMENT NET EMPLOYMENT GAINS PERMANENT EMPLOYMENT PERMANENT JOB PERMANENT JOBS PERMANENT WORKERS PREVIOUS RESULTS PREVIOUS SECTION PRIVATE SECTOR PRODUCTIVITY EFFECTS PRODUCTIVITY GAINS RETAIL TRADE RIGID LABOR MARKET RIGID LABOR MARKETS SEASONAL WORKERS SOCIAL PROTECTION TEMPORARY JOBS TEMPORARY WORKERS TERMINATION TOTAL EMPLOYMENT TOTAL WORKER UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNIONS WORK IN PROGRESS WORKER WORKING This paper studies the effects of labor-regulation reform using data for 10,396 firms from 14 Latin American countries. Firms are asked both how many permanent workers they would have hired and how many they would have terminated if labor regulations were made more flexible. I find that making labor regulations more flexible would lead to an average net increase of 2.08 percent in total employment. Firms with fewer than 20 employees would benefit the most, with average gains in net employment of 4.27 percent. Countries with more regulated labor markets would experience larger gains in total employment. These larger gains in total employment, however, would be achieved through higher rates of hiring and higher rates of termination. These results may explain why there is substantial opposition to labor reforms despite the predicted gains in efficiency and total employment. 2012-05-31T18:58:07Z 2012-05-31T18:58:07Z 2008-09 http://documents.worldbank.org/curated/en/2008/09/9817220/job-creation-labor-reform-latin-america http://hdl.handle.net/10986/6774 English Policy Research Working Paper No. 4708 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGGREGATE EMPLOYMENT AGGREGATE PRODUCTIVITY COLLECTIVE BARGAINING CREATIVE DESTRUCTION DISMISSAL DISMISSALS DISPLACED WORKER DISPLACED WORKERS DISPLACEMENT EARNINGS LOSSES ECONOMICS EMPLOYEE EMPLOYEE TURNOVER EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT INCREASES EMPLOYMENT STATISTICS FIRING FIRING COSTS FIRM LEVEL FIRM SIZE FIRM TURNOVER FLEXIBLE LABOR MARKETS HIRING INFORMAL ECONOMIES INFORMAL ECONOMY JOB CREATION JOB DESTRUCTION JOB MARKET JOB ROTATION JOB SECURITY JOB SECURITY REGULATION JOB SECURITY REGULATIONS JOB TURNOVER JOBS LABOR DEMAND LABOR LEGISLATION LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INDICATOR LABOR MARKET POLICY LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOR TURNOVER LATIN AMERICAN MINIMUM WAGES NET EMPLOYMENT NET EMPLOYMENT GAINS PERMANENT EMPLOYMENT PERMANENT JOB PERMANENT JOBS PERMANENT WORKERS PREVIOUS RESULTS PREVIOUS SECTION PRIVATE SECTOR PRODUCTIVITY EFFECTS PRODUCTIVITY GAINS RETAIL TRADE RIGID LABOR MARKET RIGID LABOR MARKETS SEASONAL WORKERS SOCIAL PROTECTION TEMPORARY JOBS TEMPORARY WORKERS TERMINATION TOTAL EMPLOYMENT TOTAL WORKER UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNIONS WORK IN PROGRESS WORKER WORKING
spellingShingle	AGGREGATE EMPLOYMENT AGGREGATE PRODUCTIVITY COLLECTIVE BARGAINING CREATIVE DESTRUCTION DISMISSAL DISMISSALS DISPLACED WORKER DISPLACED WORKERS DISPLACEMENT EARNINGS LOSSES ECONOMICS EMPLOYEE EMPLOYEE TURNOVER EMPLOYERS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT INCREASES EMPLOYMENT STATISTICS FIRING FIRING COSTS FIRM LEVEL FIRM SIZE FIRM TURNOVER FLEXIBLE LABOR MARKETS HIRING INFORMAL ECONOMIES INFORMAL ECONOMY JOB CREATION JOB DESTRUCTION JOB MARKET JOB ROTATION JOB SECURITY JOB SECURITY REGULATION JOB SECURITY REGULATIONS JOB TURNOVER JOBS LABOR DEMAND LABOR LEGISLATION LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INDICATOR LABOR MARKET POLICY LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOR TURNOVER LATIN AMERICAN MINIMUM WAGES NET EMPLOYMENT NET EMPLOYMENT GAINS PERMANENT EMPLOYMENT PERMANENT JOB PERMANENT JOBS PERMANENT WORKERS PREVIOUS RESULTS PREVIOUS SECTION PRIVATE SECTOR PRODUCTIVITY EFFECTS PRODUCTIVITY GAINS RETAIL TRADE RIGID LABOR MARKET RIGID LABOR MARKETS SEASONAL WORKERS SOCIAL PROTECTION TEMPORARY JOBS TEMPORARY WORKERS TERMINATION TOTAL EMPLOYMENT TOTAL WORKER UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT RATE UNIONS WORK IN PROGRESS WORKER WORKING Kaplan, David S. Job Creation and Labor Reform in Latin America
geographic_facet	Latin America & Caribbean
relation	Policy Research Working Paper No. 4708
description	This paper studies the effects of labor-regulation reform using data for 10,396 firms from 14 Latin American countries. Firms are asked both how many permanent workers they would have hired and how many they would have terminated if labor regulations were made more flexible. I find that making labor regulations more flexible would lead to an average net increase of 2.08 percent in total employment. Firms with fewer than 20 employees would benefit the most, with average gains in net employment of 4.27 percent. Countries with more regulated labor markets would experience larger gains in total employment. These larger gains in total employment, however, would be achieved through higher rates of hiring and higher rates of termination. These results may explain why there is substantial opposition to labor reforms despite the predicted gains in efficiency and total employment.
format	Publications & Research :: Policy Research Working Paper
author	Kaplan, David S.
author_facet	Kaplan, David S.
author_sort	Kaplan, David S.
title	Job Creation and Labor Reform in Latin America
title_short	Job Creation and Labor Reform in Latin America
title_full	Job Creation and Labor Reform in Latin America
title_fullStr	Job Creation and Labor Reform in Latin America
title_full_unstemmed	Job Creation and Labor Reform in Latin America
title_sort	job creation and labor reform in latin america
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/09/9817220/job-creation-labor-reform-latin-america http://hdl.handle.net/10986/6774
_version_	1764401049894912000

Job Creation and Labor Reform in Latin America

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