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The Effects of Climate on Output per Worker: Evidence from the Manufacturing Industry in Colombia

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  • Mateo Salazar

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Abstract

This paper quantifies the effect of an increase in temperature and precipitation on the average output per worker in the Colombian manufacturing industry. In order to address this issue with rigor, a methodology has been developed using a theoretical model and an empirical estimation. The estimation of the empirical model was made with economic data from the Annual Survey of the Manufacturing Industry, the Monthly Manufacturing Sample and climate data from IDEAM. The results show evidence that temperature (-0.3%/+1%) has a negative effect and precipitation (+0.03%/+1%) has a positive effect on average output per worker. The results build on previous literature arguing that worker's productivity is a channel through which climate and climate change affect economic performance.

Suggested Citation

  • Mateo Salazar, 2017. "The Effects of Climate on Output per Worker: Evidence from the Manufacturing Industry in Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes - CEDE, vol. 79(2), August.
  • Handle: RePEc:col:000090:015697
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    References listed on IDEAS

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    More about this item

    Keywords

    Climate change; ergonomics; productivity;

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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