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Arepas are not Tacos: On the Labor Markets of Latin America

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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.

Suggested Citation

  • Maria Aristizabal-Ramirez & Cezar Santos & Alejandra Torres, 2024. "Arepas are not Tacos: On the Labor Markets of Latin America," International Finance Discussion Papers 1396, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgif:1396
    DOI: 10.17016/IFDP.2024.1396
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    1. Funkhouser, Edward, 1996. "The urban informal sector in Central America: Household survey evidence," World Development, Elsevier, vol. 24(11), pages 1737-1751, November.
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    More about this item

    Keywords

    Latin America; Labor markets; Informality; Unemployment; Transitions;
    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
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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