Front Matter Page
Western Hemisphere Department
Contents
I. Introduction
II. Data and Methodological Approach
III. The Cyclical Properties of Informality and its Link to Labor Market Regulations
IV. Labor Market Flexibility and the Speed of Adjustment of Employment
V. Labor Market Regulation and Growth
VI. Conclusion and Policy Implications
Figures
Figure 1. Informality’s Responsiveness to GDP Changes in LAC
Figure 2. Informality and Labor Market Characteristics
Figure 3. Speed of Adjustment Coefficients
Figure 4. Correlates of the Speed of Adjustment Coefficient
Figure 5. Speed of Adjustment and Growth
Tables
Table 1. Responsiveness of Informality to Output Fluctuations in LAC
Table 2. Responsiveness of Informality to Output Fluctuations: Alternative Definitions
Table 3. Informality and de facto Labor Market Regulations
Table 4. Common Correlated Effect Error-Correction Model of Employment
Table 5. Microeconomic Flexibility, Informality, and Labor Market Regulations
Table 6. Speed of Adjustment and Labor Market Characteristics
Table 7. Sectoral Heterogeneity, Interactions with Macro policies, and Asymmetric Responses
Table 8. Labor Market Regulations and Labor Productivity Growth
References
Appendix
Appendix A. Data Sources and Definitions for Selected Variables
Appendix B. Caballero, Cowan, Engel and Micco (2013) Methodology
Appendix C. Error-Correction Model Results at the Sectoral Level