Abstract

ORTIZ, Carlos Humberto; URIBE, José Ignacio  and  VIVAS, Harvy. Formal employment and modern firms. Perf. de Coyunt. Econ. [online]. 2010, n.16, pp.117-131. ISSN 1657-4214.

Based on the information of the Manufacturing Annual Survey from 1956 to 2007, a direct relationship is found betweenthecreation of establishments and employment creation. Without ignoring the effect of employment as labor costs, it is claimed the nature of employment as demand derived from economic activity. It is proposed to amend the development model to guide the economy towards diversification in technology-intensive activities and human capital so as to generate high quality employment.

Keywords : Formal employment; modern firms; labor costs; labor demand.

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