Unemployment in Latin America and the Caribbean

Author/Editor:

Laurence M. Ball ; Nicolas de Roux Uribe ; Marc Hofstetter

Publication Date:

November 1, 2011

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

JEL Cl This study constructs a new data set on unemployment rates in Latin America and the Caribbean and then explores the determinants of unemployment. We compare different countries, finding that unemployment is influenced by the size of the rural population and that the effects of government regulations are generally weak. We also examine large, persistent increases in unemployment over time, finding that they are caused by contractions in aggregate demand. These demand contractions result from either disinflationary monetary policy or the defense of an exchange - rate peg in the face of capital flight. Our evidence supports hysteresis theories in which short - run changes in unemployment influence the natural rate.

Series:

Working Paper No. 11/252

Subject:

English

Publication Date:

November 1, 2011

ISBN/ISSN:

9781463923341/1018-5941

Stock No:

WPIEA2011252

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

37

Please address any questions about this title to publications@imf.org