Who Benefits from Labor Market Regulations? Chile 1960-1998

38 Pages Posted: 25 Apr 2011

See all articles by Claudio E. Montenegro

Claudio E. Montenegro

World Bank Group; Universidad de Chile, Economics Department

Carmen Pages

Inter-American Development Bank (IADB); IZA Institute of Labor Economics

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Date Written: August 2003

Abstract

Economists have examined the impact of labor market regulations on the level of employment. However, there are many reasons to suspect that the impact of regulations differs across types of workers. In this paper we take advantage of the unusually large variance in labor policy in Chile to examine how different labor market regulations affect the distribution of employment and the employment rates across age, gender and skill levels. To this effect, we use a sample of repeated cross-section household surveys spanning the period 1960-1998 and measures of the evolution of job security provisions and minimum wages across time. Our results suggest large distribution effects. We find that employment security provisions and minimum wages reduce the share of youth and unskilled employment as well as their employment rates. We also find large effects on the distribution of employment between women and men.

Suggested Citation

Montenegro, Claudio E. and Pages-Serra, Carmen, Who Benefits from Labor Market Regulations? Chile 1960-1998 (August 2003). IDB Working Paper No. 415, Available at SSRN: https://ssrn.com/abstract=1818704 or http://dx.doi.org/10.2139/ssrn.1818704

Claudio E. Montenegro (Contact Author)

World Bank Group ( email )

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Universidad de Chile, Economics Department

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Carmen Pages-Serra

Inter-American Development Bank (IADB) ( email )

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IZA Institute of Labor Economics

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