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More than a decade has passed since the introduction of comprehensive macroeconomic stabilization packages and trade, fiscal, and financial market reforms in Latin America and the Caribbean. However, growth prospects remain disappointing; labor markets show lackluster performance, with low participation rates, high and persistent informality, and, in some cases, open unemployment. Creating viable and lasting employment is vital to reduce poverty and spread prosperity in the region. The failure to create more and more productive and rewarding jobs carries substantial political, social, and...

More than a decade has passed since the introduction of comprehensive macroeconomic stabilization packages and trade, fiscal, and financial market reforms in Latin America and the Caribbean. However, growth prospects remain disappointing; labor markets show lackluster performance, with low participation rates, high and persistent informality, and, in some cases, open unemployment. Creating viable and lasting employment is vital to reduce poverty and spread prosperity in the region. The failure to create more and more productive and rewarding jobs carries substantial political, social, and...

Analyzing the effects of regulation and deregulation on Latin American labor markets, Law and Employment joins the ongoing debate about the virtues and costs of legislating mandatory benefits for workers. Of the numerous labor regulations that were altered or created in Latin America during the last thirty years, many have had unintended and far-reaching results. Nobel Prize-winning economist James J. Heckman, and Carmen Pages document the behavior of firms attempting to stay in business and be competitive while facing the high costs of complying with these labor laws. They challenge the...