The Quality of Jobs in Latin America and the Caribbean

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The Job Quality Index (JQI) shows significant variation across countries in Latin America and the Caribbean (LAC), with Chile and Costa Rica at the forefront, while Guatemala, Honduras, and Peru rank the lowest [2][14] - Job quality disparities exist within countries, particularly affecting women, youth, and rural workers [2][31] - Economic growth correlates with both job creation and improvements in job quality, as evidenced by the employment-to-GDP elasticity [2][20] - Increases in job quality are often associated with reductions in poverty and inequality [2][17] Summary by Sections Motivation and Methods - Job quality is a critical factor in reducing poverty and inequality in LAC, extending beyond mere earnings to include social insurance and job satisfaction [4] - The JQI incorporates four dimensions: earnings, benefits, security, and satisfaction, to assess job quality [6][10] Findings - The JQI reveals substantial differences in job quality across LAC, with countries like Uruguay and Chile performing well in benefits coverage, while Guatemala and Honduras lag behind [11][14] - Job quality improvements were noted in most countries from the first to the latest available years, with Argentina, Colombia, and Peru showing the most significant gains [14] - A 0.01 increase in the JQI correlates with a 0.9% increase in GDP per capita and a decrease in poverty rates [17] Job Quality Dimensions - The JQI is constructed based on labor income above the poverty line, provision of benefits, job security, and job satisfaction [7][8][10] - Job quality is closely linked to labor productivity, with higher productivity associated with better job quality across sectors [23] Demographic Disparities - Gender gaps in job quality are prevalent, with the widest disparities in Peru, Bolivia, and Ecuador [26] - Young workers (15-24 years) experience the lowest job quality, while prime-age workers (25-54 years) have better job quality [27][28] Final Remarks - The report highlights the heterogeneity in job quality across and within countries in LAC, emphasizing that better jobs are linked to economic development and structural transformation [31]