Resumen
- In this note we discuss some structural aspects of the Colombian labour market and its condition in the aftermath of the pandemic. We also describe the wage-setting process in Colombia, highlighting the long-run relationship between wages, prices and labour productivity. We divide this note into four sections. The first one describes the long-run trends and the cyclical properties of key labour market indicators. We also survey the main impacts of the Covid-19 pandemic on the Colombian labour market, as documented in the literature. The second section focuses on wages and their role in the recent inflationary escalation. We describe the main drivers of inflation in the wake of the pandemic, some features of the wage-setting process in Colombia, and the long-run relationship between wages, prices and labour productivity. The latter exercise provides a measure of inflationary pressure from the labour market in the short run. Given the prominent role of the legal minimum wage (MW) in the wage-setting process, the third section summarises the main findings of a comprehensive study on the impacts of the MW in Colombia, recently published by the Central Bank of Colombia. Finally, the fourth section concludes.