The unemployment effects of labor regulation around the world

Feldmann, Horst

doi:10.1016/j.jce.2008.10.001

Cited by 124 publications

(62 citation statements)

References 41 publications

(36 reference statements)

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“…See also Cappellari et al (2012) for a more comprehensive review of the literature on EPL and productivity, and Bertola (1994) and Hopenhayn and Rogerson (1993) for seminal papers on the aggregate effects of labour legislation on growth. Finally, Feldmann (2009) provides empirical evidence on the impact of labour regulation on unemployment. 6 Acemoglu (2003) shows that regulations in the labour market, by compressing the wage distribution, might induce firms to invest more heavily in technologies that are complementary to low skilled workers.…”

Section: Introductionmentioning

confidence: 99%

Human capital, employment protection and growth in Europe

Conti

Sulis

2016

Journal of Comparative Economics

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Section: Introductionmentioning

confidence: 99%

Human capital, employment protection and growth in Europe

Conti

Sulis

2016

Journal of Comparative Economics

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“…Different empirical studies, by considering diverse country samples and/or periods and using various econometric techniques and models, reached different conclusions regarding the specific impact of some or all of the above institutional variables (eg, OECD, 1994;Scarpetta, 1996;Nickell, 1997;Signorelli, 1997;Garcilazo and Spiezia, 2007;Bassanini and Duval, 2009;Feldmann, 2009;Arpaia and Curci, 2010). Others combined institutions and sub-national level variables to explain regional (un)employment rate differences and dynamics (eg, Signorelli, 2007 andMarelli et al, 2012a;Demidova and Signorelli, 2012).…”

Section: Institutions Flexibilities and Policiesmentioning

confidence: 99%

Comparing Labor Market Performance: Some Stylized Facts and Key Findings

Brada

Signorelli

2012

Comp Econ Stud

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“…First, they constitute the "price" for hiring a legal salaried worker. Many authors have shown that this price has important implications for the level and distribution of employment in Latin America and elsewhere (see Heckman and Pages (2000); Heckman and Pages (2004); Botero et al (2004); Loayza et al (2005); Micco and Pagés (2006); Kahn (2007) ;Feldmann (2009)). Second, they reveal how different countries establish what is considered a "fair" remuneration and the basic bundle of benefits for workers.…”

Section: Introductionmentioning

confidence: 99%

Measuring the Cost of Salaried Labor in Latin America and the Caribbean

Alaimo¹,

Bosch²,

Gualavisi³

et al. 2017

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work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license. 2 AbstractThis paper presents new data documenting the cost of salaried labor in 20 Latin American and Caribbean countries. We gather data on the three main costs associated to hiring salaried labor; (i) minimum wages and other monetary benefits, (ii) mandated contributions for social insurance and other benefits and (iii) job security provisions. We present two new indicators. First, we calculate the average non-wage cost of salaried labor (NWC). This indicator answers the following question: for the average wage, what additional share of wages must be satisfied by workers and employers to fulfill all the law mandated non-wage costs of a legal salaried relationship. Our second indicator combines these non-wage costs with the nominal restriction that legal wages cannot be lower than the minimum wage. We calculate the annual dollar value of paying a worker the minimum wage plus all mandated non-wage costs as a share of GDP per worker. This constitutes the minimum cost of salaried labor (MCSL). We highlight seven important facts; (i) The average non-wage cost of salaried labor (NWC) for the region is 49% of wages.(ii) There is a large dispersion across countries like Argentina, Brazil and Peru with costs around 70% of wages and countries like Trinidad and Tobago, Jamaica and Chile with cost less than 40% of wages. (iii) Mandatory contributions are the most important component of the average non-wage cost of salaried labor with 27.3% of wages followed by additional benefits with 13.8% of wages while job security provisions account for another 8.4%. (iv) On average, mandated contributions from employers amount to 17.5% of average annual wages, versus 9.8% of mandated contributions from employees. (v) The minimum cost of salaried labor (MCSL) is on average 39% of GDP per worker.(vi) Variation of the MCSL across countries is even larger. For countries like Mexico, Trinidad and Tobago or the Dominican Republic the MCSL it is below 15% of GDP per worker while the minimum cost of hiring a salaried worker in Honduras is 95% of GDP per capita. (vii) Despite having below average NWC, the five poorest countries in our sample are those presenting the highest MCSL, due to high minimum wages relative to GDP per worker.

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The unemployment effects of labor regulation around the world

Cited by 124 publications

References 41 publications

Human capital, employment protection and growth in Europe

Human capital, employment protection and growth in Europe

Comparing Labor Market Performance: Some Stylized Facts and Key Findings

Measuring the Cost of Salaried Labor in Latin America and the Caribbean

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