NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Cost of Job Security Regulation: Evidence from Latin American Labor Markets

James J. Heckman, Carmen Pages

NBER Working Paper No. 7773
Issued in June 2000
NBER Program(s):   LS

This paper documents the high level of job security protection in Latin American labor markets and analyzes its impact on employment. We show that job security policies have substantial impact on the level and the distribution of employment in Latin America. They reduce employment and promote inequality. The institutional organization of the labor market affects both employment and inequality.

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Published: Heckman, James J. and Carmen Pages-Serra. “The Cost of Job Security Regulation: Evidence from the Latin American Labor Markets." Journal of the Latin American and Caribbean Economic Association 1, 1 (Fall 2000): 109-154.

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