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Employment in Crisis – How to generate better jobs in Latin America?

by smart

crises like cov19 are harsher foreign skilled workers for example this graph shows employment effects for low and high skilled workers in the formal sector in brazil and ecuador due to the global financial crisis in 2008 2009. in this example what we see is that both countries about two years after the beginning of the recession employment has rebounded to pre-crisis levels for high-skilled workers however it has remained a lower for low-skilled workers for an average of nine years with very few signs of recovery effects on inequality are important the drop in wage for unskilled workers in response to the global financial crisis in these countries was 1.5 times larger than that of skilled workers importantly in latin america effects are not just for those who aren’t working new workers entering the job market in a bad year face a worse start of their careers one from which they have a lot of difficulty in recovering for example looking at data for mexico over the last 20 years we find that these effects are linked to a lower participation rate higher unemployment rates and a higher likelihood of working informally compared to those entering the labor markets in normal times even for the same level of skills this report finds that the way a crisis impacts on workers crucially depends on the region they live in and the firms they work for workers in latin america are more cautious in regions with higher informality or if they work in protected firms however this type of cushioning is not necessarily good for the economy higher informality and protection are normally associated with lower long-term growth so there are two important questions are there better ways to protect workers can these be done differently you


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Employment in Crisis - How to generate better jobs in Latin America?
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