02031cas a2200265 a 4500 AALejournalIMF016112 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513523750 1018-5941 BD-DhAAL BD-DhAAL David, Antonio. Labor Market Dynamics, Informality and Regulations in Latin America / Antonio David, Samuel Pienknagura, Jorge Roldos. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Labor markets in Latin America and the Caribbean (LAC) are characterized by high levels of informality and relatively rigid regulation. This paper shows that these two features are related and together make the speed of adjustment of employment to shocks slower, especially when regulations are tightly enforced. Evidence suggests that strict labor market regulations also have an adverse effect on medium-term growth. While both regulations on prices (minimum wages) and quantities (employment protection) decrease the speed of adjustment to shocks, they appear to be binding in different phases of the cycle-the former affects mostly the (net) job creation margin and the latter the (net) job destruction margin. The results also highlight possible interactions between labor market regulations and the effectiveness of macro-stabilization tools-including exchange rate depreciation. Mode of access: Internet Pienknagura, Samuel. Roldos, Jorge. IMF Working Papers; Working Paper ; No. 2020/019 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/019/001.2020.issue-019-en.xml IMF e-Library