Economic Reforms and Labor Markets: Policy Issues and Lessons from Chile, Issue 7646
National Bureau of Economic Research, 2000 - Chile - 66 pages
This paper deals with the reform to labor market regulation implemented by Chile during the last twenty years. We concentrate on the reform to job security, on the decentralization of the wage bargaining process, and on the reduction in payroll taxes. Our interest is to understand to what extent these reforms helped reduce Chile's rate of unemployment from European' to U.S' levels. We argue that the reduction of payroll taxes (within the context of the social security reform), and the decentralization of bargaining increased labor market flexibility and contributed to the reduction of unemployment. Our analysis suggests that the reform on job security had no significant effect on the aggregate rate of unemployment.
What people are saying - Write a review
We haven't found any reviews in the usual places.
aggregate unemployment analysis analyze assumed Blanchard and Summers capital Chile Chile's labor market coefficient collective bargaining collective bargaining process cost of job covered sector decline degree of labor economic effect employers employment protection legislation equilibrium estimated Free searchable abstracts Greater Santiago increase the degree individual retirement accounts informal sector job protection job security legislation Kalman Filter labor market flexibility labor market outcomes labor market reforms labor market regulations level of unemployment Macroeconomic military regime minimum wage modem sector monthly wages natural rate negotiations non-covered sector number of strikes number of unemployed OECD parameters payroll tax post reform period protected sector rate of unemployment reduce Reforms to Job restrictive risk neutrality Salvador Allende Section severance payment significantly social security contributions social security reform social security system subscription Table tax component Unemployment Dynamics Equation unemployment persistence unions wage rate World Bank www.nber.org Free searchable