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

Peer Reviewed icon Peer Reviewed
Author
Heckman, James J.
Date issued
Aug 2000
Subject
Financial Crisis and Structural Adjustement;
Poverty;
Workforce and Employment;
Labor
Category
Working Papers
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.