Borradores de Economia
Número:
180
Publicado:
Clasificación JEL:
E24
Palabras clave:
Unemployment, wage, neoclassica, labor market adjustment
Lo más reciente
Juliana Jaramillo-Echeverri, Karina Acosta, Olga Lucia Acosta Navarro, Oscar Iván Ávila-Montealegre, Jhorland Ayala-García, Jaime Bonet-Morón, Jesus Botero, Luz A. Flórez, Daniela Gallo, Luis Armando Galvis-Aponte, Karelys Guzmán-Finol, Eduardo A. Haddad, Ana María Iregui-Bohórquez, David Camilo López-Valenzuela, Ligia Alba Melo-Becerra, Juan J. Ospina-Tejeiro, Andrea Otero-Cortés, Julian A. Parra-Polania, Gerson Javier Pérez-Valbuena, José Pulido, María Teresa Ramírez-Giraldo, Mario A. Ramos-Veloza, Charles Rahal, Jorge Leonardo Rodríguez-Arenas, Shadia Zardibia
Miguel Felipe Vanegas-Vanegas
Camilo Bohorquez-Penuela, Leonardo Bonilla-Mejía, Anabelle Couleau, Alexánder Almeida
The Colombian urban unemployment rate grew dramatically over the last six years. At the same time the real wage also had a sharp increase. The empirical evidence supports the hypothesis that an exogenous increase in the real wage was a cause of the unemployment growth. The long-run elasticity suggests that one percent increase of the real wage index increases unemployment rate something between 0.7 and 1.0 percent. Therefore it seems necessary that real wage comes back to its equilibrium path for the reduction of the unemployment rate to the natural level.