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