Should I Stay or Should I Go?: Career Choices for Young Workers in Latin America
Labor market institutions shape the return to workers’ skills. They define the incentives of firms and workers to invest in general and specific skills, affecting the returns to experience and tenure. This paper presents an empirical assessment of this hypothesis. We take advantage of rich administrative data from Brazil and Chile, two countries with different regulatoryframeworks. We focus on young workers as they face to a greater extent the trade-off between accumulating general or specific skills.