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Comparative Analysis of Social Inequalities in the Latin American Labour Market

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Abstract

The structuring of social inequalities in the Latin American labour market can be explained from a double perspective. First, in general, from the theory of labour market segmentation, where it is possible to differentiate mainly the hierarchical configuration of a primary and a secondary segment, resulting from different characterising factors that converge on both the demand and supply sides of the labour market. Secondly, particularly for Latin America, the theory of structural heterogeneity explains how capitalist economies subjected to an unequal, combined and dependent development model generate modern productive sectors of high productivity that coexist with others of very low productivity linked to informality and social subsistence needs. Based on this approach, the chapter performs two analytical exercises: first, it obtains a typology of four country models by comparing “Key Labor Market Indicators” proposed by the ILO and, second, it analyses in depth one country of each type to account for a multidimensional model of employment segmentation with national labour force surveys. Our hypothesis is that the same general pattern of labour segmentation emerges despite the socioeconomic and institutional differences in each country.

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Notes

  1. 1.

    The complete data matrix is attached in the appendix.

  2. 2.

    We refer to contract conditions and the quality thereof, and we do not specifically capture the characteristics of labour from the demand side contextualised the way production and labour are aorganised, with effective functions and qualifications that are observable in the micro-social realities of jobs.

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Acknowledgements

This chapter was produced in the context of the INCASI Network, a European project that has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie GA, No. 691004, and coordinated by Dr. Pedro López-Roldán. This chapter only reflects the author’s views, and the Agency is not responsible for any use that may be made of the information it contains.

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Appendix. KILM Variables that Characterise 28 Latin-American and Caribbean Countries

Appendix. KILM Variables that Characterise 28 Latin-American and Caribbean Countries

 

Country

Employment_to_populaiton ratio

Status in employment

Employment agriculture

Employment services

Managers professionals

Advan-ced educa-tion

Hours of work

Informal employment

Unemployment rate

Labour underutilization

Youth NEET rate

Time-related underemployment

Month-ly earnin-gs

Lab-our costs

Labour productivity

Extre-mely poor

Higher economic class

Lab-our dependency ratio

Trade union density rate

Collec-tivebargain-ing coverage rate

1

Argentina

54.8

74.7

0.1

77.5

24.7

22.6

38

43.8

9.5

 

19.3

11.9

1201

1.1

46,753

0.1

96.4

1.4

27.7

 

2

Bahamas

65.7

85.6

2.6

81.3

30.1

   

11.9

     

53,657

0.0

95.8

0.9

  

3

Barbados

59.3

83.4

2.8

78.0

30.9

   

9.6

  

3.0

  

35,691

0.1

94.7

1.1

  

4

Belize

60.9

66.2

17.6

67.8

25.7

20.0

43

 

9.4

12.7

27.3

3.6

997

 

18,643

3.4

73.4

1.4

9.1

9.1

5

Bolivia

65.7

37.6

28.1

50.2

17.2

18.8

43

74.7

3.3

10.2

11.6

5.3

1004

 

15,585

5.3

81.5

1.2

39.1

 

6

Brazil

55.9

67.8

9.4

70.2

23.8

22.0

38

36.0

12.5

24.3

24.2

7.3

1036

 

32,578

0.8

89.6

1.3

18.9

70.5

7

Chile

57.9

71.5

9.2

68.1

26.2

18.3

40

22.2

7.2

21.7

15.9

8.7

896

13.6

50,669

0.3

95.6

1.2

19.6

17.9

8

Colombia

63.6

49.1

16.4

64.3

18.8

28.1

44

58.3

9.1

17.2

22.9

8.0

1294

 

27,492

1.9

81.5

1.0

9.5

15.7

9

Costa Rica

55.2

75.8

12.5

69.1

23.3

20.1

42

35.5

8.1

25.6

19.0

8.2

2071

6.8

36,699

0.3

95.3

1.3

19.4

10.6

10

Cuba

52.4

90.7

18.3

64.9

21.5

16.0

41

 

2.3

     

36,390

0.0

93.6

1.3

81.4

81.4

11

Dominican Republic

60.3

56.3

9.5

71.1

16.4

12.5

41

50.9

5.8

17.1

24.3

5.4

683

 

35,298

0.9

84.7

1.3

11.0

 

12

Ecuador

66.4

50.9

27.5

54.0

13.3

15.4

38

52.4

3.9

 

17.7

   

22,306

3.9

80.7

1.1

  

13

El Salvador

58.3

60.0

18.5

59.7

10.7

5.8

42

68.2

4.4

14.9

28.4

8.7

609

 

17,419

0.7

77.1

1.4

19.0

5.0

14

Guatemala

60.6

62.5

29.3

50.0

9.5

4.3

43

72.6

2.7

12.7

27.3

10.3

653

 

18,951

3.5

68.2

1.5

2.6

 

15

Guyana

50.5

39.4

18.5

55.9

17.9

7.3

 

35.9

12.2

30.6

1.4

7.0

826

 

21,259

1.8

79.8

1.8

  

16

Haiti

58.7

13.8

49.8

39.9

6.5

   

13.5

 

35.2

   

4213

19.8

29.0

1.5

  

17

Honduras

62.6

47.8

31.9

47.6

12.1

5.4

39

77.1

4.1

20.2

27.7

10.9

677

 

10,770

12.8

56.8

1.3

  

18

Jamaica

60.7

60.7

16.6

67.8

21.8

 

43

 

9.5

  

0.8

1439

 

17,762

0.3

82.9

1.1

  

19

Mexico

59.1

68.6

13.0

61.1

19.8

17.5

46

56.1

3.3

 

18.4

4.7

681

 

40,163

1.3

68.0

1.3

12.5

 

20

Nicaragua

63.7

55.2

31.0

52.3

15.2

9.6

36

74.9

4.5

 

1.4

25.9

1176

 

12,109

5.3

51.7

1.2

5.3

 

21

Panama

63.8

65.2

14.3

67.1

24.9

16.6

38

40.4

3.9

13.3

17.2

5.1

1298

 

49,792

0.4

92.5

1.2

11.9

1.0

22

Paraguay

67.3

56.2

20.0

59.9

18.0

14.9

41

50.6

4.7

14.8

18.1

5.5

  

18,803

0.4

86.8

1.1

6.7

0.7

23

Peru

75.0

45.1

27.5

56.9

25.4

30.4

39

59.8

28

 

17.7

5.0

839

 

22,868

3.6

76.1

0.8

5.7

4.8

24

Puerto Rico

36.5

83.0

1.4

81.6

33.0

   

11.4

   

1673

 

99,961

0.0

99.6

2.3

  

25

Suriname

47.7

86.0

7.0

68.3

32.4

   

7.6

     

39,627

6.3

77.2

1.8

  

26

Trinidad and Tobago

58.9

76.6

3.2

69.5

30.6

22.0

  

2.8

 

52.1

   

63,561

0.0

95.1

1.1

19.8

 

27

Uruguay

59.2

72.0

8.7

71.6

22.4

15.1

43

26.7

8.0

20.4

18.0

9.4

1219

 

45,117

0.0

98.3

1.1

30.1

 

28

Venezuela

57.0

63.5

7.2

71.7

26.7

29.4

38

 

8.4

 

19.6

 

833

 

27,550

10.1

66.7

1.4 I

0.2

2.5

  1. Source: Key Indicators of the Labour Market (KILM), International Labour Office (2016)

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López-Roldán, P., Fachelli, S. (2022). Comparative Analysis of Social Inequalities in the Latin American Labour Market. In: Vommaro, P., Baisotti, P. (eds) Persistence and Emergencies of Inequalities in Latin America. Latin American Societies. Springer, Cham. https://doi.org/10.1007/978-3-030-90495-1_13

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