Figure 1

Figure 2

Figure 3

Figure A1

Distribution of the GCI indicators by the data source (%)
Pillar | Executive Opinion Survey | International organization |
---|---|---|
(soft data) | (hard data) | |
1: Institutions | 50 | 50 |
2: Infrastructure | 42 | 58 |
3: ICT adoption | 0 | 100 |
4: Macroeconomic stability | 0 | 100 |
5: Health | 0 | 100 |
6: Skills | 67 | 33 |
7: Product market | 50 | 50 |
8: Labor market | 67 | 33 |
9: Financial system | 33 | 67 |
10: Market size | 0 | 100 |
11: Business dynamism | 50 | 50 |
12: Innovation capability | 40 | 60 |
Total | 45 | 55 |
GCI scores and countries’ ranks in the labor market pillar for the selected countries, 2018
LAC | Peru | Colombia | Dominican Republic | Mexico | Brazil | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Score* | Rank** | Score | Rank | Score | Rank | Score | Rank | Score | Rank | Score | Rank | |
Objective data | ||||||||||||
Female participation in labor force | 59.1 | 4 | 56.9 | 82 | 66.9 | 67 | 100 | 3 | 44.6 | 89 | 77.3 | 49 |
Labor tax rate | 85.5 | 5 | 95.8 | 34 | 85.3 | 83 | 85.3 | 83 | 75.6 | 112 | 55.3 | 137 |
Redundancy costs | 57.5 | 6 | 84.5 | 40 | 73.6 | 71 | 53.8 | 110 | 62.5 | 99 | 76.2 | 66 |
Workers’ rights | 68.8 | 3 | 70.1 | 71 | 57.7 | 110 | 84.5 | 28 | 56.7 | 112 | 66 | 88 |
Subjective data | ||||||||||||
Active labor market policies | 23.8 | 7 | 17.9 | 126 | 30.5 | 92 | 19 | 120 | 25.3 | 109 | 27.6 | 105 |
Cooperation in labor–employer relations | 52.2 | 6 | 50.7 | 102 | 55.8 | 69 | 56.7 | 63 | 57 | 61 | 46.6 | 117 |
Ease of hiring foreign labor | 54.7 | 2 | 52.5 | 63 | 51.2 | 71 | 53 | 60 | 55.3 | 48 | 40.6 | 122 |
Flexibility of wage determination | 59.9 | 7 | 76.3 | 16 | 62.5 | 85 | 59 | 103 | 68.6 | 55 | 51.9 | 124 |
Hiring and firing practices | 35.4 | 7 | 31.5 | 128 | 38.7 | 109 | 39.3 | 108 | 40.2 | 105 | 20.8 | 138 |
Internal labor mobility | 60.6 | 2 | 65.6 | 24 | 64.4 | 33 | 68 | 17 | 66.4 | 22 | 29.2 | 138 |
Pay and productivity | 40.6 | 6 | 42.5 | 96 | 42.5 | 97 | 42.3 | 98 | 45.1 | 82 | 39.5 | 113 |
Reliance on professional management | 50.6 | 5 | 51.1 | 81 | 51.6 | 78 | 48.2 | 91 | 53.8 | 67 | 56.7 | 58 |
Pillar 8: Labor market | 55.3 | 4 | 58.8 | 72 | 57.9 | 80 | 61.6 | 51 | 54.4 | 100 | 51 | 114 |
The Survey and the country: percentage of firms with <100 workers in the selected countries, 2008–2019
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Peru | The Survey | 2 | 9 | 12 | 16 | – | – | – | – | – | – | – | – |
The country | 98.4 | 98.4 | 98.3 | 98.3 | 98.3 | 98.5 | 98.4 | 98.4 | 98.4 | 98.0 | 99.1 | 98.4 | |
1–10 | 98.2 | 98.2 | 98.1 | 98.1 | 98.0 | 98.4 | 98.2 | 98.2 | 98.2 | 97.8 | 99.0 | 98.2 | |
11–100 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.1 | 0.2 | |
Colombia | The Survey | 52 | 43 | 43 | 49 | – | – | – | – | – | – | – | – |
The country a | – | – | – | 99.7 | 99.6 | 99.6 | 99.6 | 99.5 | 99.5 | 99.6 | 99.6 | 99.6 | |
1–10 | – | – | – | 94.5 | 93.6 | 92.9 | 92.7 | 92.3 | 92.2 | 93.0 | 92.7 | 92.7 | |
11–100 | – | – | – | 5.2 | 6.0 | 6.7 | 6.8 | 7.2 | 7.4 | 6.7 | 6.9 | 6.9 | |
Mexico | The Survey | 15 | 25 | 33 | 38 | – | – | – | – | – | – | – | – |
The country | – | 99.5 | 99.4 | 99.5 | 99.5 | 99.5 | 99.4 | 99.4 | 99.4 | 99.4 | 99.3 | 99.3 | |
1–10 | – | 94.96 | 93.92 | 93.80 | 93.75 | 94.09 | 93.84 | 93.78 | 93.69 | 93.58 | 93.57 | 93.48 | |
11–100 | – | 4.53 | 5.50 | 5.66 | 5.70 | 5.41 | 5.52 | 5.61 | 5.70 | 5.81 | 5.76 | 5.83 | |
Dominican Republic | The Survey | 49 | 46 | 1 | 26 | – | – | – | – | – | – | – | – |
The country b | – | 95.4 | 96.5 | 96.9 | 96.3 | 95.3 | – | – | 97.2 | 97.2 | 97.3 | 98.1 | |
1–10 | – | 66.4 | 70.1 | 71.5 | 69.9 | 70.6 | – | 74.1 | 73.9 | 74.3 | 76.0 | ||
11–100 | – | 29.0 | 26.4 | 25.4 | 26.3 | 24.7 | – | – | 23.1 | 23.3 | 23.0 | 22.1 | |
Brazil | The Survey | 4 | 20 | 23 | 22 | – | – | – | – | – | – | – | – |
The country c | 99.1 | 99.2 | 99.1 | 99.1 | 99.1 | 99.1 | 99.1 | 99.1 | 99.0 | 99.0 | 98.9 | 99.2 | |
1–10 | 88.9 | 88.9 | 88.8 | 88.1 | 87.9 | 87.9 | 87.1 | 86.7 | 86.6 | 86.1 | 85.3 | 87.9 | |
11–100 | 10.2 | 10.2 | 10.3 | 11.0 | 11.2 | 11.2 | 12.0 | 12.3 | 12.5 | 12.9 | 13.6 | 11.3 |
Questionnaire of the Survey’s labor market pillar
Indicator | Question (“In your country...”) | Answer |
---|---|---|
1. Hiring and firing practices | To what extent do regulations allow for the flexible hiring and firing of workers? |
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2. Cooperation in labor–employer relations | How do you characterize labor–employer relations? |
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3. Flexibility of wage determination | How are wages generally set? |
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4. Active labor policies | To what extent do labor market policies help unemployed people to reskill and find new employment? |
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5. Ease of hiring foreign labor | How restrictive are regulations related to the hiring of foreign labor? |
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6. Internal labor mobility | To what extent do people move to other parts of the country for professional reasons? |
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7. Reliance on professional management | Who holds senior management positions in companies? |
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8. Pay and productivity | To what extent is pay related to employee productivity? |
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GCI labor market scores in 2007 and 2017
Overall | Subjective | |||||
---|---|---|---|---|---|---|
2007 | 2017 | ∆ | 2007 | 2017 | ∆ | |
Peru | 4.12 | 4.27 | 0.32 | 4.31 | 3.89 | –2.87 |
Colombia | 4.25 | 3.98 | –0.58 | 4.56 | 3.73 | 3.12 |
Dominican Republic | 4.13 | 3.62 | –1.19 | 4.73 | 3.56 | 2.14 |
Mexico | 4.09 | 3.77 | –0.74 | 4.56 | 3.92 | 1.82 |
Brazil | 3.96 | 3.68 | –0.65 | 3.98 | 3.36 | 2.35 |
Formalization policies in the selected countries
Peru | Colombia | Dominican Republic | Mexico | Brazil | ||
---|---|---|---|---|---|---|
Regulatory environment | Deregulation in hiring and dismissal |
|
| 1990s: Increase in the cost of dismissal |
| 1988: Increase in the minimum overtime pre-mium, in value of paid vacations, in cost of dismissing workers and in payroll taxes |
Special employment regimes |
| |||||
Incentives to formalize employment | Reduction in social security contributions for youth |
| 2010: Subsidies for hiring youth who have never held a formal job | 2000: Subsidies for the hiring of young interns | ||
Reduction in social security contributions for microentrepreneurs and/or SMEs | 2014: Social Security Incorporation Regime (RISS) |
| ||||
Simplification of business registration for entrepreneurs | 2016: Exemption for the mercantile registry and the first renovation for young entrepreneur companies | 2016: Law on Entrepreneurship | ||||
Boost enterprise registration and creation | Simplified taxation regimes for MSEs and microentrepreneurs |
|
|
| 2014: Fiscal Incorporation Regime (RIF) |
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Single windows for enterprises | 2007: Electronic payroll system | 2006: Planilla Integrada de Liquidacion de Aportes (PILA) | 2014: eSocial | |||
Simplification of business registration business |
| 2002: Rapid business start-up system (SARE) | 2006: National Network for the Simplification of Registration and Legalization of Companies and Business (REDESIM) |
Evolution of WEF’s sampling guidelines and Survey sample size for the selected countries, 2008–2019
Year | Sample frame lists | Definition of firm size | Average number of respondents | Number of respondents in the selected countries | ||||
---|---|---|---|---|---|---|---|---|
Peru | Colombia | Dominican Republic | Mexico | Brazil | ||||
(2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | |
2008 | SMEs; large enterprises | Country-specific | 91 | 84 | 128 | 61 | 73 | 180 |
2009 | SMEs; large enterprises | Country-specific | 95 | 89 | 235 | 61 | 154 | 181 |
2010 | SMEs; large enterprises | Country-specific | 98 | 86 | 195 | 43 | 94 | 168 |
2011 | SMEs; large enterprises | Country-specific | 98 | 88 | 137 | 54 | 354 | 185 |
2012 | SMEs; large enterprises | Country-specific | 100 | 83 | 286 | 91 | 278 | 143 |
2013 | SMEs; large enterprises | Country-specific | 94.7 | 85 | 204 | 56 | 320 | 98 |
2014 | SMEs; large enterprises | Country-specific | 92.8 | 85 | 162 | 62 | 340 | 114 |
2015 | SMEs; large enterprises | Country-specific | 98.6 | 91 | 162 | 77 | 311 | 197 |
2016 | SMEs; large enterprises | Country-specific | 102.8 | 88 | 158 | 78 | 304 | 128 |
2017 | Micro and large enterprises, SMEs | <10, 11 −250, >251 | 95.9 | 90 | 134 | 54 | 291 | 103 |
2018 | SMEs; large enterprises | ≤249; >250 | 92.25 | 98 | 113 | 59 | 208 | 118 |
2019 | SMEs; large enterprises | ≤249; >250 | 97.5 | 112 | 117 | 61 | 161 | 231 |