Labor Law Violations in Chile

21 Pages Posted: 31 Jul 2013

See all articles by Ravi Kanbur

Ravi Kanbur

Cornell University; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Lucas Ronconi

Centro de Investigación y Acción Social & CONICET

Leigh Wedenoja

Cornell University

Date Written: June 1, 2013

Abstract

This paper is a contribution to the empirical literature on quantification of labor law violation. It takes up the case of a relatively advanced developing country, Chile, which has a high degree of administrative and bureaucratic capacity. Using micro survey data, the paper establishes the basic facts of compliance with four dimensions of labor law: minimum wage, hours worked, having a contract, and having a pension. On average over the period 1990-2009, we find that the laws were violated in at least one of these dimensions for one third of workers. However, there are large and significant variations over time, across laws and by worker and firm characteristics. Simple tabulation followed by econometric analysis shows that compliance rates are lower for women, foreign born, indigenous and less educated workers; in smaller firms; and in agricultural regions. These initial findings frame a rich research agenda on compliance and enforcement of labor law in Chile.

Suggested Citation

Kanbur, Ravi and Ronconi, Lucas and Wedenoja, Leigh, Labor Law Violations in Chile (June 1, 2013). International Labour Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2303986 or http://dx.doi.org/10.2139/ssrn.2303986

Ravi Kanbur

Cornell University ( email )

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Ithaca, NY 14853
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HOME PAGE: http://www.kanbur.dyson.cornell.edu

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lucas Ronconi (Contact Author)

Centro de Investigación y Acción Social & CONICET ( email )

Av. Callao 542
Buenos Aires, 1022
Argentina

Leigh Wedenoja

Cornell University ( email )

Ithaca, NY 14853
United States

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