The Burden of Labour Costs in Mexico
We analysed labour costs in Mexico and evaluated their impact in terms of firm performance. Using a new survey, we studied how firms chose to conduct a firing procedure (i.e. mandatory payment, negotiation, or legal dispute) and the actual costs derived from that decision. We found that firms that negotiate have, on average, lower costs. This may mean that workers subvaluate the legal benefits. Moreover, legal disputes may increase firing costs by 50 per cent. We contributed to the analysis of the impact of such costs on employment and found that, when firms negotiate or pay higher costs, this decreases the level of employment. We also analysed the impact of Social Benefits on employment using an industrial survey. We found that a 10 per cent increment in these benefits may have a negative long-term impact of 9 per cent on the level of employment. Copyright 2007 The Authors; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..
Year of publication: |
2007
|
---|---|
Authors: | Rojas, Gabriel Montes ; Santamaría, Mauricio |
Published in: |
LABOUR. - Centro di Studi Internazionali Sull'Economia e la Sviluppo (CEIS). - Vol. 21.2007, 1, p. 157-188
|
Publisher: |
Centro di Studi Internazionali Sull'Economia e la Sviluppo (CEIS) |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Income inequality, skills and trade: evidence from Colombia during the 80s and 90s
Santamaría, Mauricio, (2004)
-
The political economy of labor reform in Colombia
Echeverry Garzon, Juan Carlos, (2004)
-
INCOME INEQUALITY, SKILLS AND TRADE: EVIDENCE FROM COLOMBIA DURING THE 80S AND 90S
Santamaría, Mauricio, (2004)
- More ...