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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
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Handle: RePEc:adv:wpaper:200504

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Related research
Keywords: Labor productivity Ecuador Guatemala Honduras Nicaragua

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References listed on IDEAS
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  1. Schiffer, M. & Weder, B., 2001. "Firm Size and the Business Environment: Worldwide Survey Results," Papers 43, World Bank - International Finance Corporation.
  2. Harold L. Cole & Lee E. Ohanian & Alvaro Riascos & James A. Schmitz, Jr., 2004. "Latin America in the rearview mirror," Staff Report 351, Federal Reserve Bank of Minneapolis. [Downloadable!]
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  3. Eduardo Lora & Patricia Cortés, 2001. "Los obstáculos al desarrollo empresarial y el tamaño de las firmas en América Latina," RES Working Papers 4258, Inter-American Development Bank, Research Department. [Downloadable!]
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This page was last updated on 2008-12-28.

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