Publication: Colombia Jobs Diagnostic: Structural Challenges for the Creation of More and Better Jobs
Files in English
542 downloads
81 downloads
256 downloads
107 downloads
Date
2022-05-05
ISSN
Published
2022-05-05
Author(s)
Carranza, Eliana
Wiseman, William David
Eberhard-Ruiz, Andreas
Cardenas Martinez, Ana Lucia
Abstract
In mid-2020, the Government of
Colombia launched a labor reform consultation process
(Misión de Empleo) in response to a deterioration in
pre-Covid19 employment indicators and changing economic and
labor market conditions. Based on a comprehensive review of
Colombia’s labor market performance for the 2009-2019
period, this report seeks to provide analytical
underpinnings to this process. At the macro level, the
report shows that employment in Colombia is insufficiently
diversified relying almost exclusively on job creation in
the services sectors. This exposes the labor market to
cyclical changes in internal demand that are typical for
commodity rich economies like Colombia. At the worker level,
the report shows that the economy generates too few formal
employment opportunities for those with fewer skills and
those living in rural areas, implying low earnings, high
rates of self-employment, and high levels of informality. At
the firm level, the reports shows that the labor regulatory
regime has contributed to strong increases in labor costs
with important effects on entry and exit dynamics of firms
contributing to a compositional shift towards larger, more
capitalized, and more skill-intensive firms.
Citation
“Carranza, Eliana; Wiseman, William David; Eberhard-Ruiz, Andreas; Cardenas Martinez, Ana Lucia. 2022. Colombia Jobs Diagnostic: Structural Challenges for the Creation of More and Better Jobs. Jobs Series;30. © Washington, DC: World Bank. http://hdl.handle.net/10986/37403 License: CC BY 3.0 IGO.”