Abstract. In a comparative institutional or 'variety of capitalism' perspective, the distinctive traits of labor markets in Latin America differ in most respects from labor markets in developed countries. Moreover, there are strong economic complementarities among five core features of labor markets in Latin America: low skill levels, high labor regulation, short job tenure, a large informal sector, and small, politicized unions that lack plant level representation. While numerous and strong, economic complementarities among these five components do not tell the whole story, and we analyze additional political complementarities. This integrated perspective on the economic and political interactions helps explain continuities in labor markets in Latin America and their disappointing response in recent decades to market reform and globalization.