Law and Employment: Lessons from Latin America and the Caribbean.

• Position: Bureau Books - Book Review

Law and Employment: Lessons from Latin America and the Caribbean, edited by James J. Heckman and Carmen Pages, will be available this summer from the University of Chicago Press for $95.00.

Of the numerous labor regulations that were altered or created in Latin America during the last 30 years, many have had unintended and far-reaching results. Heckman and Pages document the behavior of firms attempting to stay in business and be competitive while facing the high costs of complying with these labor laws. They show that mandated benefits reduce employment, have a disruptive impact on turnover rates and labor market flexibility, promote inequality, and discriminate against marginal workers. Along with in-depth studies of Colombia, Peru, Brazil, Argentina, Chile, and Uruguay, Law and Employment provides comparative analysis...