| Abstract: |
Job finding and separation are not well studied in economies with high labor
informality. In this paper we contribute to filling the gap in the literature
of labor turnover, proposing a methodology to estimate both indicators in an
economy with high informality. To this end we estimate indicators of job
finding and separation rates for Peru's developing economy, in which labor
informality stands at 70 percent. We find that, on average, these indicators
in the formal sector are similar to those estimated in developed economies;
however, in the informal sector the calculated indicators are approximately
two times higher than those of the formal sector. The two indicators show
considerable heterogeneity in the informal sector according to several
observable categories; in addition, the separation rate is countercyclical and
the finding rate is procyclical, this cyclicality being greater in the formal
sector. |