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What Makes a Difference in Achieving Higher Labor Productivity?: The Case of Low-Income Countries in Latin America

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Author Info
Osvaldo Nina () (Grupo Integral)

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Abstract

This paper uses firm level surveys from Ecuador, Guatemala, Honduras and Nicaragua to estimate the determinants of labor productivity. This study started out with the hypothesis that the adverse external business conditions that firms in poor Latin American countries face, may be an important explication of the generally low levels of productivity. However, the empirical results, based on the survey of more than 1300 businesses, do not confirm this hypothesis. Compared to all the variables that are under the firms control, such as capital intensity, energy use, and worker skills, the external business environment (macroeconomic instability and labor regulations) has very little impact on productivity.

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Publisher Info
Paper provided by Institute for Advanced Development Studies in its series Development Research Working Paper Series with number 04/2005.

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Length: 27 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:adv:wpaper:200504

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Related research
Keywords: Labor productivity; Ecuador; Guatemala; Honduras; Nicaragua;

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  1. Harold L. Cole & Lee E. Ohanian & Alvaro Riascos & James A. Schmitz, Jr., 2004. "Latin America in the Rearview Mirror," NBER Working Papers 11008, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-11.

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