Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87811
Authors: 
Muriel, Beatriz
Machicado, Carlos Gustavo
Year of Publication: 
2012
Series/Report no.: 
Development Research Working Paper Series 07/2012
Abstract: 
This paper analyzes employment in Bolivian registered manufacturing firms during 1988 to 2007, establishing its relationship with labor regulation. Estimating job flows, we find that firms with high temporary worker rates (less labor regulation costs) are those with both higher job reallocation rates and higher net employment growth, and only they contributed to employment growth during the country economic downturn, 1998-1999. In addition, estimating demand functions, we find the following effects of recent changes in labor norms: i) the compulsory basic salary rise in 2006-2009 entailed costs in terms of job losses, 5.6 percent for production workers and 4.8 percent for non-production workers; iii) the major labor costs derived from the new pension law, enacted in 2010, decreased employment demand around 1 percent; and, iv) labor protection policies decreased production workers demand.
Subjects: 
job flows
labor demand
labor regulation
translog function
unbalanced panel
JEL: 
D24
J01
J23
K31
Document Type: 
Working Paper

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