The Incidence of Job Security Regulations on Labor Market Flexibility and Compliance in Colombia: Evidence from the 1990 Reform
Peer Reviewed
Date issued
May 2000
Subject
Labor Policy;
Workforce and Employment
JEL code
J41 - Labor Contracts;
J63 - Turnover • Vacancies • Layoffs;
J64 - Unemployment: Models, Duration, Incidence, and Job Search;
J65 - Unemployment Insurance • Severance Pay • Plant Closings;
J68 - Public Policy
Country
Colombia
Category
Working Papers
Utilizing differences-in-differences estimates, this paper reviews the impact of reduced firing costs on the dynamism of the Colombian labor market. The effects include raising exit rates into and out of unemployment, increasing compliance with labor legislation by lowering the costs of formal production, and reducing unemployment from the late 1980s to the early 1990s.
Generative AI enabled