Labor Market Regimes and Mobility through a Markov Chain in Chile

In this paper we analyze the dynamics of labor markets in Chile. Our goal is to understand how flexibility in the labor market has changed over time, and in particular, to relate this change with the legislation framework. We analyze mobility in four different periods, each of them associated with different labor regimes. Based on flows, we estimate transition probabilities across three relevant possible states: unemployment, employment, and out of the labor force. Our finding shows that since 1974 employment became less secure. The probability for an employed person of becoming unemployed almost doubled since 1974 and remained thereafter. Also, the probability of remaining unemployed increased from 26,1% in the period 1962-73, to over 40% in the periods 1974-79 and 1980-89, but felt to 25,6% after 1990. This in spite the average unemployment rate doubled between these two periods. The probabilities related with discourage and added worker effects were stable in the different periods considered, except since 1990, where the hypothesis of discouraged workers is challenged. Finally, whilst the natural rate of unemployment doubled after the reforms in 1974, it remained high until the last period, starting in 1990. Changes in participation compensated such changes, and hence, the expected length of unemployment did not increase dramatically in the period, remaining stable around two quarterslabor markets, transition probabilities, unemployment.

Aggregation and Emergence in Agent-Based Models: A Markov Chain Approach

We analyze the dynamics of agent--based models (ABMs) from a Markovian perspective and derive explicit statements about the possibility of linking a microscopic agent model to the dynamical processes of macroscopic observables that are useful for a precise understanding of the model dynamics. In this way the dynamics of collective variables may be studied, and a description of macro dynamics as emergent properties of micro dynamics, in particular during transient times, is possible.Comment: 5 pages, 1 figur

Embodied technological change, capital sectoral allocation and export-led growth

This paper contributes to the literature on economic growth by seeking to join several lines of research on structural factors in a more fully specified framework, on the one hand, and by making this more inclusive supply side to interact with demand factors in a model of export-led growth, on the other hand. Balance-of-payments constraints influence the adoption of investment-specific technological change which requires the import of capital goods, while the sectoral allocation of physical and human capital is likewise revealed to be crucial for economic growth, both results having important policy implications.embodied technological change; sectoral allocation of investment; human capital accumulation; export-led growth