Participation in the Labor Supply in Latin America, 2000–2008

Abstract

This paper analyzes the determinants of participation in the labor supply in a sample of ten Latin American countries. To this end, a VAR model is estimated with the variables economic growth, wages, unemployment and participation rate. A first section discusses the evolution and determining variables of participation rates in the Latin American countries, under the light of recent theories. This is followed by a review of recent literature on participation in Latin American countries. Next, impulse response functions are analyzed which permits to appreciate the role of economic growth, the real wage and the unemployment rate on participation. Further analysis is carried to appreciate the role of governance in the labor market. The paper ends with a discussion of the social policies related to labor markets.JEL classifications: J21, J24, J64.

Gender, Employment, and Domestic and External Savings in Guatemala

“…Figure 9 constructed with a cross-section of 2017 data of Latin American countries, shows that as the human opportunity index, IOH, increases, the ratio of female to male employment increases; in other words, investments in health, education, housing, and electricity, that serve girls and children regardless of their parents' income and their place of residence, is a means to promote social mobility and female participation. Caceres (2013) has shown that in Latin American countries the human opportunity index increases with the increase in social spending, particularly spending on education. This highlights the role of social policy in increasing economic growth and external solvency, which indicates that social policy must receive the same, or more, attention than that given to traditional macroeconomic policies.…”