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Labor Market Indicator for Colombia (LMI)

Author

Listed:
  • Deicy J. Cristiano-Botia
  • Manuel Dario Hernandez-Bejarano
  • Mario A. Ramos-Veloza

Abstract

We construct the Labor Market Indicator (LMI) focusing on the cyclical similarities of eighteen time series from household, industrial, and opinion surveys between 2001 and 2019. The LMI summarizes the growth cycle of the labor market as defined by Mintz (1972) and is connected to the evolution of the traditional business cycle indicators as well as to that of the GDP and the Unemployment rate GAP. The evolution of the indicator provide useful information to policy makers, as it complements the characterization of expansions and turning points. Thus, improving the analysis of the current momentum of the labor market. **** RESUMEN: En este documento construimos el Indicador del Mercado Laboral (LMI) con base en las similitudes entre los componentes cíclicos de 18 series de tiempo que incluyen Encuestas de hogares, industrial y de opinión entre 2001 y 2019. El LMI resume el ciclo de crecimiento del mercado laboral tal como lo define Mintz (1972) y su evolución esta relacionada con la indicadores tradicionales del ciclo de los negocios así como a la de las brechas del PIB y de la tasa de desempleo. La evolución del indicador brinda información útil a los hacedores de política dado que complementa la caracterización de las expansiones y los puntos de quiebre. De esta manera, se obtiene un análisis más completo del momentum del mercado laboral.

Suggested Citation

  • Deicy J. Cristiano-Botia & Manuel Dario Hernandez-Bejarano & Mario A. Ramos-Veloza, 2021. "Labor Market Indicator for Colombia (LMI)," Borradores de Economia 1152, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:1152
    DOI: https://doi.org/10.32468/be.1152
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    More about this item

    Keywords

    LMI; Mercado Laboral; Modelo de factores dinámicos; Tasa de desempleo; LMI; Colombian labor market; dynamic factor model; unemployment rate.;
    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
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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