International Finance Discussion Papers (IFDP)
September 2024
Arepas are not Tacos: On the Labor Markets of Latin America
Maria Aristizabal-Ramirez, Cezar Santos, and Alejandra Torres
Abstract:
This paper examines labor markets across Latin American countries, revealing substantial differences in unemployment, informality, and worker transitions. Using surveys from eight countries, we construct comparable statistics on employment stocks and mobility patterns. Notable cross-country differences emerge, with economies mostly clustered into high unemployment-low informality or low unemployment-high informality groups. Transition probabilities and directional flows also vary significantly. We highlight the importance of using country-specific parameters when simulating labor market and aggregate outcomes. Finally, we compare our main results with those by sex and education groups.
Keywords: Latin America, Labor markets, Informality, Unemployment, Transitions
DOI: https://doi.org/10.17016/IFDP.2024.1396
PDF: Full Paper
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