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dc.titleArepas Are Not Tacos: On the Labor Markets of Latin America
dc.contributor.authorAristizábal-Ramírez, María
dc.contributor.authorSantos, Cezar
dc.contributor.authorTorres, Alejandra
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.date.available2025-08-27T00:08:00
dc.date.issue2025-08-27T00:08:00
dc.description.abstractThis paper examines labor markets across Latin American countries and documents large differences in labor market outcomes across these countries. Using comparable data for eight countries, we show that unemployment and informality act as substitute states and cluster countries into high-unemployment or high-informality groups. Labor market transitions vary systematically across these groups and help explain differences in employment dynamics. Embedding country-specific transitions in a simple model, we show that these differences have meaningful macroeconomic implications: countries with more volatile labor markets exhibit higher asset accumulation and greater consumption inequality. Moreover, heterogeneity in labor market transitions produces different effects on how taxation influences savings and inequality.
dc.format.extent31
dc.identifier.doihttp://dx.doi.org/10.18235/0013673
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Arepas-Are-Not-Tacos-On-the-Labor-Markets-of-Latin-America.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectInformal Economy
dc.subjectLabor Market
dc.subjectLabor Force
dc.subjectLabor
dc.subjectRating
dc.subjectFormal Labor
dc.subject.jelcodeE24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity
dc.subject.jelcodeE26 - Informal Economy • Underground Economy
dc.subject.jelcodeJ46 - Informal Labor Markets
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsLabor markets;Informality;Unemployment;Transitions
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01713
idb.operationRG-K1089
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