Labour market flexibility in Barbados

From a developing country perspective, an examination of the extent of labour market regulation is pertinent given the highly labour-intensive nature of most production. Labour market inflexibility can constrain these countriesÂ’ ability to boost long-run economic growth and development. In the case of Barbados, a small island developing economy grappling with the challenges of development in a highly competitive global economic environment, labour market flexibility is critical to ensuring the success of its development strategy. This paper therefore seeks to assess the extent of labour market flexibility in Barbados. A survey approach is employed and cross-country comparisons are made to establish BarbadosÂ’ position relative to the rest of the world. The results of the study can be used to guide labour market reform in Barbados and offer some valuable insights that may be of interest to other small developing economies, such as those in the Caribbean. Indeed, with the creation of the CARICOM Single Market and Economy and the prospect of free movement of labour, this type of study takes on even greater significance.