Labor Market Institutions in the Caribbean

The objectives of improving competitiveness and reducing unemployment, in particular among the young and women, are a part of the economic and the political agenda of most Caribbean countries. Labor market institutions play a crucial role. This study analyzes six types of institutions: (i) labor legislation, related to collective bargaining and termination of contracts; (ii) minimum wages (iii) vocational training; (iv) industrial relations; (v) social dialogue, and (vi) the role of the Ministry of Labor, and proposes policies that could contribute to employment and competitiveness. The report adopts a political economy approach and puts forward a characterization of reforms in terms of their potential impact and viability. It concludes that the Caribbean countries have many assets and also some liabilities.