Labor Fluidity and Performance of Labor Outcomes in Colombia: Evidence from Employer-Employee Linked Panel

Leonardo Morales and Daniel Medina Gaspar

No 14249, Borradores de Economia from Banco de la Republica

Abstract: In this paper, we compute standard measures of fluidity for the Colombian urban labor market: worker and job reallocation rates and the excess of worker reallocation over job reallocation. We analyze the period between the second semester of 2008 and the second semester of 2014, finding evidence of an increase of fluidity in the labor market, especially after 2010. We test the hypothesis of a positive effect of fluidity on different employment and occupation indexes using instrumental variables regression models that exploit the variation of labor results and fluidity measures between metropolitan areas and over time. We find robust and positive effects of fluidity on some labor market result indexes related to employment and occupation. To the best of our knowledge, a positive causal effect of fluidity on the performance of the labor market has not been documented for a developing economy.

Keywords: Labor market fluidity; unemployment; occupation. (search for similar items in EconPapers)
JEL-codes: J11 J60 J63 (search for similar items in EconPapers)
Pages: 33
Date: 2016-02-22
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Labor Fluidity and Performance of Labor Outcomes in Colombia: Evidence from Employer-Employee Linked Panel (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:014249

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