The effects of minimum wage increases on labor demand growth
This work discusses the effects of the minimum wage on Colombian Manufacturing labor using the estimation of conditional and unconditional labor demand models, as well as the panel structure of the Colombian Annual Manufacturing Survey (AMS). Findings show significant long-run minimum wage elasticit...
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Formato: | Tesis de maestría (Master Thesis) |
Lenguaje: | Español (Spanish) |
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Universidad del Rosario
2018
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Acceso en línea: | http://repository.urosario.edu.co/handle/10336/19149 |
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Español (Spanish) |
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Labor demand Minimum wage Manufacturing Employment determinants TFP Economía laboral Mano de obra Mercado laboral Trabajo calificado |
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Labor demand Minimum wage Manufacturing Employment determinants TFP Economía laboral Mano de obra Mercado laboral Trabajo calificado Rivera, Sergio A. The effects of minimum wage increases on labor demand growth |
description |
This work discusses the effects of the minimum wage on Colombian Manufacturing labor using the estimation of conditional and unconditional labor demand models, as well as the panel structure of the Colombian Annual Manufacturing Survey (AMS). Findings show significant long-run minimum wage elasticities in labor demand: 0.638, -0.774, and -0.6 for skilled, unskilled, and total workers, respectively; meaning that minimum wage pressures the substitution of unskilled for skilled workers. The substitution effect, however, is not enough to prevent a negative reaction on aggregate labor demand due to the predominantly unskilled composition of the manufacturing workforce. The minimum wage negative effect on labor demand is especially sizable for unskilled temporary workers. The largest employment generating sectors are more sensitive to minimum wage and own price variations revealing the presence of heterogeneity within the manufacturing. Additionally, a positive TFP elasticity of labor demand is found in the unconditional labor demand model but it is not statistically significant implying the link between TFP and labor demand could potentially be affected by the increased prevalence of temporary contracts among workers. |
author2 |
Arango, Luis E. |
author_facet |
Arango, Luis E. Rivera, Sergio A. |
format |
Tesis de maestría (Master Thesis) |
author |
Rivera, Sergio A. |
author_sort |
Rivera, Sergio A. |
title |
The effects of minimum wage increases on labor demand growth |
title_short |
The effects of minimum wage increases on labor demand growth |
title_full |
The effects of minimum wage increases on labor demand growth |
title_fullStr |
The effects of minimum wage increases on labor demand growth |
title_full_unstemmed |
The effects of minimum wage increases on labor demand growth |
title_sort |
effects of minimum wage increases on labor demand growth |
publisher |
Universidad del Rosario |
publishDate |
2018 |
url |
http://repository.urosario.edu.co/handle/10336/19149 |
_version_ |
1645141037087195136 |
spelling |
ir-10336-191492019-09-19T12:37:54Z The effects of minimum wage increases on labor demand growth Rivera, Sergio A. Arango, Luis E. Labor demand Minimum wage Manufacturing Employment determinants TFP Economía laboral Mano de obra Mercado laboral Trabajo calificado This work discusses the effects of the minimum wage on Colombian Manufacturing labor using the estimation of conditional and unconditional labor demand models, as well as the panel structure of the Colombian Annual Manufacturing Survey (AMS). Findings show significant long-run minimum wage elasticities in labor demand: 0.638, -0.774, and -0.6 for skilled, unskilled, and total workers, respectively; meaning that minimum wage pressures the substitution of unskilled for skilled workers. The substitution effect, however, is not enough to prevent a negative reaction on aggregate labor demand due to the predominantly unskilled composition of the manufacturing workforce. The minimum wage negative effect on labor demand is especially sizable for unskilled temporary workers. The largest employment generating sectors are more sensitive to minimum wage and own price variations revealing the presence of heterogeneity within the manufacturing. Additionally, a positive TFP elasticity of labor demand is found in the unconditional labor demand model but it is not statistically significant implying the link between TFP and labor demand could potentially be affected by the increased prevalence of temporary contracts among workers. 2018-11-22 2019-02-27T17:34:06Z info:eu-repo/semantics/masterThesis info:eu-repo/semantics/acceptedVersion http://repository.urosario.edu.co/handle/10336/19149 spa Atribución-NoComercial-SinDerivadas 2.5 Colombia http://creativecommons.org/licenses/by-nc-nd/2.5/co/ info:eu-repo/semantics/openAccess application/pdf Universidad del Rosario Maestría en Economía Facultad de Economía reponame:Repositorio Institucional EdocUR instname:Universidad del Rosario Addessi, W. 2014. The productivity effect of permanent and temporary labor contracts in the Italian manufacturing sector. Economic Modelling, 36, 666-672. Arango-Thomas. L. E., Castellani. F. & Obando. N., 2016. It is mainly about where you work! Labor demand in the Colombian manufacturing sector. Borradores de Economía. No 933. Banco de la República de Colombia. Arango, L. E., Herrera, P., & Posada, C. E., 2007. El salario mínimo: aspectos generales sobre los casos de Colombia y otros países. Borradores de economía, No 436, Banco de la República de Colombia Arango. C.A. and Rojas. A.M., 2003. Demanda laboral en el Sector Manufacturero Colombiano: 1977-1999. Borradores de Economía. No. 247. Banco de la República de Colombia. Arellano. M. and Bond. S.R., 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58. 277–298 Balat. J. & Casas. C., 2018. Firm Productivity and Cities: The Case of Colombia. Borradores de Economía. No. 1032. Banco de la República de Colombia. Blundell. R. and Bond. S., 1998. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics. Vol. 87. pp. 115-143. Cahuc, P., and Zylberberg, A., 2004. Labor economics. Cambridge. MIT Press c2004. Eslava. M., Haltiwanger. J., Kugler. A. and Kugler. M., 2010. Factor adjustments after deregulation: panel evidence from Colombian plants. The Review of Economics and Statistics. 92(2). pp.378-391. Hamermesh. D., 1993. Labor Demand. New Jersey. Princeton Academic Press. pp. 444. Judzik, D. (2014). Heterogeneous labor demand: sectoral elasticity and trade effects in the US, Germany and Sweden. Munich Personal RePEc Archive Lichter, A., Peichl, A., and Siegloch, S., 2014, The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis, IZA Discussion Paper Series, No. 7958. Levinsohn. J. and Petrin. A., 2003. Estimating Production Functions Using Inputs to Control for Unobservables. The Review of Economic Studies. No. 70. pp. 317-341. Medina. C., Posso. C., Tamayo. J. and Monsalve. E., 2013. Dinámica de la demanda laboral en la industria manufacturera colombiana 1993-2009: una estimación panel VAR. Chapter 7. in Mercado de trabajo en Colombia: hechos. tendencias e instituciones. Arango L.E and F. Hamann (eds.). Banco de la República. coeditor. 2013. Olley. G. S. and A. Pakes 1996: The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica. 64. 1263–1297. Roberts. M. and Skoufias. E. 1997. The long-run demand for skilled and less skilled labor in the Colombian manufacturing plants. The Review of Economics and Statistics. Vol. 79. No. 2. pp. 330-334. Tybout. J. R. & Westbrook. M. D., 1995. Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries. Journal of International Economics. 39(1-2). 53-78. Vivas. A., Farne. S. and Urbano. D., 1998. Estimaciones de funciones de demanda de trabajo dinámicas para la economía colombiana. 1980-1996. Archivos de Macroeconomía. No. 092. Departamento Nacional de Planeación |
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12,131701 |