Job Finding and Separation Rates in an Economy with High Labor Informality*

Nikita Cespedes Reynaga and Nelson R. Ramírez-Rondán

A chapter in Workplace Productivity and Management Practices, 2021, vol. 49, pp 277-302 from Emerald Group Publishing Limited

Abstract: Job finding and separation are not well studied in economies with high labor informality. In this chapter, we contribute to filling the gap in the literature of labor turnover, proposing a methodology to estimate both indicators in an economy with high informality. To this end, we estimate indicators of job finding and separation rates for Peru's developing economy, in which labor informality stands at 70%. We find that, on average, these indicators in the formal sector are similar to those estimated in developed economies; however, in the informal sector, the calculated indicators are approximately two times higher than those of the formal sector. The two indicators show considerable heterogeneity in the informal sector according to several observable categories; in addition, the separation rate is countercyclical, and the finding rate is procyclical, this cyclicality being greater in the formal sector.

Keywords: Job creation; job destruction; informality; job duration; business cycle; Peru; E24; E26; J63; J64; O17 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Working Paper: Job finding and separation rates in an economy with high labor informality (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rleczz:s0147-912120210000049010

DOI: 10.1108/S0147-912120210000049010

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