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Oferta de Trabajo en la República Dominicana: Tendencias y Determinantes

Ramirez, Francisco A. (2013): Oferta de Trabajo en la República Dominicana: Tendencias y Determinantes.

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This paper documents recent trends of the labor supply in the Dominican Republic, and inquire about factor explaining its behavior. Entails an empirical analysis of labor supply phenomena both from a point of view of participation rate and the hours dedicated to labor market. Using information from the National Labor Force Survey, I show the main stylized facts and patterns related the participation rates and working hours between 1991 to 2012, and identify the main determinants. During this period, female participation rises steadily, mainly in the age range between 40 and 60 years. In contrast, male participation rate shrinks mildly. The hours worked, also register a negative trend since the 2000. The results suggest that the level of schooling and the condition of head of the household are the main factor behind the rise of the female participation rate in labor force. The number of children does not figure as a limiting factor in the incorporation both man and women to the labor force. Nevertheless, remittances plays a negative and important impact on participation. Regarding to labor supply, estimations suggest that women have a bigger response to changes in real wages than men, and in both cases substitution effect govern the response of hours worked. Once the decision to participate in the labor market is taken, the number of children becomes a relevant variable explaining hours of work, with a positive sign. This results suggest that policies oriented to the insertion to the labor market of women, must be based on tax exception or on incentives that enhance the salary that women receives. Also, policies oriented to collaborate in children nursering will have significant impact on labor supply, but not in participation rates.

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