The Constitutional Court and Labor Market Flexibility

This document presents a number of theoretical and practical arguments to explain how constitutional jurisprudence (rulings on the constitutionality of laws and on the "accion de tutela") has become a factor affecting the flexibility of labor legislation in Colombia. Two examples are presented. One of them deals with the accion de tutela, the other with a lawsuit demanding the unconstitutionality of a law. The latter example is formalized through a microeconomic model taken from the producer's theory to demonstrate how a reduction in the degree of flexibility in labor contracts may affect decisions on wage levels and/or employment