Poverty and the Labor Market in Venezuela 1982-1995

Poverty and the Labor Market in Venezuela 1982-1995

Describes the performance of the Venezuelan labor market in the period between 1982 and 1995, and to analyze its impact on the evolution of poverty

Section 1 focuses the main labor market problem (and the main explanation of the surge in poverty counts) in Venezuela is falling real wages, not unemployment. The labor market appears to have an unending ability to absorb labor, even though the price is the collapse in productivity and real wages. Section II is dedicated to an exploration into the dynamics of the Venezuelan labor market through the use of conceptual framework derived from segmented labor market models such as Harris-Todaro´s. Section III will open with an analysis of the overall evolution of poverty, to go on with an analysis of the sub-periods identified in the previous section. Finally, in Section IV some concluding remarks will be presented. [author]