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Economic growth and the Chilean labor market

Author

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  • Francisco Parro G.
  • Loreto Reyes R.

Abstract

This article analyzes the Chilean labor market dynamics across different periods of economic growth. The evidence shows that the unemployment rate and job creation exhibit a marked synchrony with real GDP growth. Specifically, the unemployment rate falls and job creation accelerates in periods of strong economic growth. Moreover, the impact of growth on these labor market variables seems to be more pronounced in the case of young workers than for male and female workers. Regarding the quality of jobs, the evidence shows that a strong economic growth increases the participation of dependent jobs created in the private sectors but decreases self-employment. The former type of jobs exhibits higher wages and a stronger attachment to the social security and healthcare systems. Lastly, we show that, beyond the cyclical fluctuations of GDP, long-term economic growth has steadily increased female labor force participation. We provide a tentative explanation to understand this latter phenomenon.

Suggested Citation

  • Francisco Parro G. & Loreto Reyes R., 2019. "Economic growth and the Chilean labor market," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 22(2), pages 070-095, August.
    • Handle: RePEc:chb:bcchec:v:22:y:2019:i:2:p:070-095
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    References listed on IDEAS

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    Cited by:

    1. Agustín Arias & Juan Guerra-Salas, 2019. "Immigration in Emerging Countries: A Macroeconomic Perspective," Working Papers Central Bank of Chile 857, Central Bank of Chile.

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