Theoretical and Empirical Implications of the New Definition of Unemployment in Colombia

Revista de Economia del Rosario, Vol. 9, No. 1, pp. 21-38, June 2006

18 Pages Posted: 30 Aug 2006

See all articles by Juan Carlos Guataqui

Juan Carlos Guataqui

Universidad del Rosario

Rodrigo Taborda

Universidad del Rosario - Faculty of Economics

Abstract

In June 2000 Colombia adopted a new definition of unemployment following the standards of the International Labour Organisation (ILO). This change implied a reduction of the unemployment rate of about two (percentage) points. In this paper we contrast the Colombian case with other countries' experiences in terms of the methodological transformation and its empirical implications. Afterwards, we test the empirical support of the change of methodology. Our results suggest specific implications on structural unemployment and its relationship to unemployment people's educational profile; therefore, they challenge the practical application of the ILO's standard unemployment definition to the Colombian case.

Keywords: unemployment, ILO classification, labour force states, measurement errors

JEL Classification: J64, J21

Suggested Citation

Guataqui, Juan Carlos and Taborda, Rodrigo, Theoretical and Empirical Implications of the New Definition of Unemployment in Colombia. Revista de Economia del Rosario, Vol. 9, No. 1, pp. 21-38, June 2006, Available at SSRN: https://ssrn.com/abstract=927107

Juan Carlos Guataqui (Contact Author)

Universidad del Rosario ( email )

Casa Pedro Fermín
Calle 14 # 4-69
Bogota
Colombia

Rodrigo Taborda

Universidad del Rosario - Faculty of Economics ( email )

Casa Pedro Fermín
Calle 14 # 4-69
Bogota
Colombia

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