SHOULD I STAY OR SHOULD I GO? CAREER CHOICES FOR YOUNG WORKERS IN LATIN AMERICA. (27th January 2020)

• Record Type: Journal Article
• Authors: Rucci, Graciana; Saltiel, Fernando; Urzúa, Sergio
• Is Part Of: Economic inquiry. Volume 58:Number 3(2020)
• Page Start: 1430
• Page End: 1449
• Publication Date: 2020-01-27
• Subjects: Economics -- Periodicals; 330.05
• DOI: 10.1111/ecin.12880
• Languages: English
• ISSNs: 0095-2583

Abstract

Abstract : This paper presents the first estimates of the returns to formal labor market experience and tenure in a developing country context. We take advantage of rich matched employer–employee data from Brazil and Chile, exploiting job displacement as a source of identification. We find positive returns to both dimensions in these countries, with larger returns to tenure in Brazil and larger returns to experience in Chile. Our findings suggest the more rigid Brazilian labor legislation may encourage firms to invest in young workers' specific skills. Chile's institutions, on the contrary, might promote the acquisition of general skills. ( JEL J24, J31, M50)