Labor market rigidities and Okun's Law Asymmetries for Latin America during the period 2000-2018

Abstract

This paper evaluates the relationship between market rigidity and Okun's law asymmetry, using a sample of six Latin American countries from 2000 to 2018. After econometric processing of the variables, the annual data show that the potential GDP of the six countries is negatively correlated with the unemployment rate. Latin American hiring regulations and the relationship between minimum wage and unemployment are opposite, and there is no explanation on how the significance of unemployment affects these variables, and there is a positive relationship with centralized collective bargaining