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Macroeconomic regime and labor market. The Argentine experience of the past two decades [Macroeconomic regime and labor market. The Argentine experience of the past two decades]

Author

Listed:
  • Luis Beccaria

    (Universidad Nacional de General Sarmiento)

  • Roxana Maurizio

    (Universidad Nacional de General Sarmiento)

Abstract

This document analyzes the interactions between macroeconomic regimes, employment generation and the dynamics of labor incomes in Argentina under two different macroeconomic regimes: the currency board regime of the 1990s and the high real exchange rate regime that followed. The former, characterized by a strong currency overvaluation, had a negative impact on economic activity and the labor market. However, the maintenance of a competitive real exchange rate does not by itself guarantee the sustained positive performance of the labor market, as it became evident in Argentina during the 2000s. Although the sizable depreciation of the peso -together with a positive international context- favored the expansion of output and employment, the initial concern of maintaining the real exchange rate at a competitive level was not continued with policies aimed to counteract the appreciation trend that appeared a few years after the implementation of the new regime.

Suggested Citation

  • Luis Beccaria & Roxana Maurizio, 2015. "Macroeconomic regime and labor market. The Argentine experience of the past two decades [Macroeconomic regime and labor market. The Argentine experience of the past two decades]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 25(spe), pages 863-890, December.
    • Handle: RePEc:nov:artigo:v:25:y:2015:i:spe:p:863-890
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    labor market; macroeconomic regime; real exchange rate; Argentina;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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