Labor Market Indicator for Colombia (LMI)

Deicy J. Cristiano-Botia, Manuel Hernandez-Bejarano and Mario Ramos-Veloza

Borradores de Economia from Banco de la Republica de Colombia

Abstract: We construct the Labor Market Indicator (LMI) focusing on the cyclical similarities of eighteen time series from household, industrial, and opinion surveys between 2001 and 2019. The LMI summarizes the growth cycle of the labor market as defined by Mintz (1972) and is connected to the evolution of the traditional business cycle indicators as well as to that of the GDP and the Unemployment rate GAP. The evolution of the indicator provide useful information to policy makers, as it complements the characterization of expansions and turning points. Thus, improving the analysis of the current momentum of the labor market. **** RESUMEN: En este documento construimos el Indicador del Mercado Laboral (LMI) con base en las similitudes entre los componentes cíclicos de 18 series de tiempo que incluyen Encuestas de hogares, industrial y de opinión entre 2001 y 2019. El LMI resume el ciclo de crecimiento del mercado laboral tal como lo define Mintz (1972) y su evolución esta relacionada con la indicadores tradicionales del ciclo de los negocios así como a la de las brechas del PIB y de la tasa de desempleo. La evolución del indicador brinda información útil a los hacedores de política dado que complementa la caracterización de las expansiones y los puntos de quiebre. De esta manera, se obtiene un análisis más completo del momentum del mercado laboral.

Keywords: LMI; Mercado Laboral; Modelo de factores dinámicos; Tasa de desempleo; LMI; Colombian labor market; dynamic factor model; unemployment rate. (search for similar items in EconPapers)
JEL-codes: E24 E66 J20 J6 (search for similar items in EconPapers)
Pages: 33
Date: 2021-01
New Economics Papers: this item is included in nep-mac
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https://doi.org/10.32468/be.1152

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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:1152

DOI: 10.32468/be.1152

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