Labor market distortions in Latin America contribute to:

Question

Quizplus · Accepted Answer

Labor market distortions in Latin America contribute to all of the above: low economic growth, informality, and low TFP. These distortions include excessive regulation, high taxes, and inflexible labor laws, among others. They make it more difficult for firms to hire workers and increase productivity, resulting in a weaker overall economy. Additionally, these distortions incentivize workers to work in the informal sector, where they may be paid less and have fewer labor protections.

Labor Market Distortions in Latin America Contribute To