Evolving%20Wage%20Cyclicality%20in%20Latin%20America

Working Papers

Evolving Wage Cyclicality in Latin America


CODE: IDB-WP-715
AUTHOR(s): Gambetti, Luca , Messina, Julián
PUBLISHED: August 2016
LANGUAGE: English
RELATED TOPICS: Macroeconomics
DOWNLOAD FILE IN: English

Abstract:

This paper examines the evolution of the cyclicality of real wages and employment in four Latin American economies (Brazil, Chile, Colombia and Mexico) during the period 1980-2010. Wages are highly pro-cyclical during the 1980s and early 1990s, a period characterized by high inflation. As inflation declined wages became less pro-cyclical, a feature that is consistent with emerging downward wage rigidities in a low-inflation environment. Compositional effects associated with changes in labor participation along the business cycle appear to matter less for estimates of wage cyclicality than in developed economies.

Related Research by JEL Codes:
(or click here to find research by JEL Codes)
  • Finance and Employment Formalization: Evidence from Mexico's Income-Expenditure Surveys, 2000-2010
    Working Papers
    IDB-WP-324 - April 2014

    This paper studies the relationship between financial slack and employment formalization by exploiting heterogeneity in industry-level financial dependence in the spirit of Rajan and Zingales (1998). Heterogeneity along with time-series variation in aggregate credit are used to determine industry-level financial slack and measure its relationship to employment formality. Also presented are two bas ... (View publication)

  • Productivity, Growth and Poverty in Mexico. What follows Progresa-Oportunidades?
    Monograph
    B-623 - June 2007

    Conditional cash transfer programs are based on a simple, yet powerful premise: creating adequate incentives today to stimulate the accumulation of human capital in poor families can provide future generations with the opportunity to generate their own higher incomes. Looking at the experience of Progresa-Oportunidades--the oldest such program whose results after 10 years provide valuable lessons- ... (View publication)

  • Wealth from Health: Linking Social Investments to Earnings in Latin America
    Books
    B-126 - December 2000

    There is common sense in the notions that healthier people are more productive and that wealthier people can obtain things that make them healthier. Investigating the strength of these associations, Wealth from Health asks whether investments in health also affect productivity and how public policy can influence this relationship. These questions are probed through a series of Latin American case ... (View publication)

Hello, Welcome to the IDB!

Please join our mailing list by simply entering your email below.