CGEMs are one of the most potentially powerful tools for simulating policies. However, a major restriction they face is them needing a huge number of parameters that are not always available, and even at times impossible to obtain. When CGEMs are applied to trade, Armington elasticities of...

The existence and magnitude of the effects of labour taxes cuts on the employment level is here analised using data for 7 Uruguayan industies along 1993-2001. A multivariate model for labour demand is especified, considering wages and product demand as endogenous variables. The main conclusion...

The knowledge of the nature and structure of trade unions is a basic requisite to correctly model bargaining between firms and unions. Thus, in this paper the historical background and the current characteristics of the Uruguayan trade unions are summarised.

Some of the main indicators of labor market performance in Uruguay are here analyzed in order to give some insight on which are the most urgent problems to be faced. Unemployment, underemployment, instability of employment and informality have gone up in Uruguay in the late nineties, in spite of...

The subject of labor unions in Latin America provokes a variety of diverse and strongly held views. While some see unions as a way to protect workers' rights and ensure an equitable distribution of income, others see unions as a drain of productivity or an intrusion of politics into the...

Armington elasticities of substitution – AEs – are a crucial set of parameters that allows CGEMs applied to trade to be operational. In the case of Uruguay, no estimated values for these parameters have been available until now, forcing researchers to impose them arbitrarily. We here start...

This paper provides new evidence on the magnitude of the elasticity of substitution between labour and capital for the Uruguayan manufacturing sector. Labour demand is derived using a right-to-manage model estimated for the period 1985-1997 using data for six industries. The evidence found...

The main purpose of this paper is to propose an alternative way of explaining – within the bargaining theory framework – the stylised fact of flat wages and employment bearing all the adjustment to shocks. Standard models predict this behaviour under the assumptions of a constant elasticity...