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José Antonio González Anaya - Labor market flexibility in 13 Latin American countries and the United States

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Once again, the quick capacity to overcome economic difficulties in 1995 was insufficient to mark improvements on the labor field. -- ILO-Latin America, Editorial, Labor Outlook 1996 For the first time, this volume compares labor market flexibility across countries in Latin America and the United States. The study uses two performance variables, a price variable measured by real wages and a quantity variable measured alternatively by either employment or unemployment. This paper looks into the structural relationship between output and these variables across 13 countries in Latin America and the United States for the last 20-30 years as a way of measuring the ability of the labor market to absorb output shocks.

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title Labor Market Flexibility in Thirteen Latin American Countries and - photo 1

title:Labor Market Flexibility in Thirteen Latin American Countries and the United States : Revisiting and Expanding Okun Coefficients World Bank Latin American and Caribbean Studies. Viewpoints
author:Gonzlez Anaya, Jos Antonio.
publisher:World Bank
isbn10 | asin:0821344897
print isbn13:9780821344897
ebook isbn13:9780585217628
language:English
subjectLabor market--Latin America, Labor market--United States.
publication date:1999
lcc:HD5730.5.A6G66 1999eb
ddc:331.12/098
subject:Labor market--Latin America, Labor market--United States.
Page i
Labor Market Flexibility in Thirteen Latin American Countries and the United States
Revisiting and Expanding Okun Coefficients
Jos Antonio Gonzlez Anaya
The World Bank
Washington, D.C.
Page ii
1999 The International Bank for Reconstruction and
Development / the world bank
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing September 1999
The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A.
The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list (with full ordering information) and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from the Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W, Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'lna, 75116 Paris, France.
Library of Congress Cataloging-in-Publication Data
Gonzlez Anaya, Jos Antonio, 1967
Labor market flexibility in thirteen Latin American countries and the United States / Jos Antonio Gonzlez Anaya.
p. cm. (World Bank Latin American and Caribbean studies)
Includes bibliographical references.
ISBN 0-8213-4489-7
1. Labor marketLatin America. 2. Labor marketUnited States.
I. Title. II. Title: Labor market flexibility in thirteen Latin American countries and the United States. III. Series.
HD5730.5.A6G66 1999
331.12'098dc21 99-15436
CIP
Page iii
Contents
Acknowledgments
ix
Acronyms and Abbreviations
x
Summary
1
I. Introduction
2
II. Real Wages, Employment, and Unemployment as Measures of Labor Market Performance
5
III. Cyclical Variations Among Employment and Unemployment, Wages, and Output
7
IV. Long-Term Structural Relationships Between Employment and Output
27
V. Conclusions
35
Appendix 1
36
Appendix 2
48
Notes
57
Bibliography
60

Page iv
Tables
Table 3.1. Unemployment Okun Coefficients for Some OECD Countries
21
Table 3.2 Summary of Cyclical Results Based on Okun Ratios
25
Table A.2.1. Regression Results for the Last Ten-Year Window
48
Figures
Figure 3.1 Ten-Year Rolling Wage, Employment and Unemployment Okun Ratios:The Exception
13
Picture 2
a. Ten-Year Rolling Wage Okun Coefficients: Argentina, Bolivia, Chile, Costa Rica, Peru, and the United States (HP50)
13
Picture 3
b. Ten-Year Rolling Employment Okun Coefficients: Argentina, Bolivia, Chile, Costa Rica, Peru, and the United States (HP50)
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