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The Latin American Efficiency Gap

  • Francesco Caselli

    ()

    (Author-Workplace-Name: Centre for Macroeconomics (CFM))

The average Latin American country produces about 1 fifth of the output per worker of the US. What are the sources of these enormous income gaps? This paper reports development-accounting results for Latin America. Development accounting compares differences in income per worker between developing and developed countries to counter-factual differences attributable to observable components of physical and human capital. Such calculations can serve a useful preliminary diagnostic role before engaging in deeper and more detailed explorations of the fundamental determinants of differences in income per worker.

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File URL: http://www.centreformacroeconomics.ac.uk/Discussion-Papers/2014/CFMDP2014-21-Paper.pdf
File Function: First version, 2014
Download Restriction: no

Paper provided by Centre for Macroeconomics (CFM) in its series Discussion Papers with number 1421.

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Length: 27 pages
Date of creation: Jul 2014
Date of revision:
Handle: RePEc:cfm:wpaper:1421
Contact details of provider: Web page: http://www.centreformacroeconomics.ac.uk/

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  1. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
  2. Francesco Caselli & Wilbur John Coleman II, 2006. "The World Technology Frontier," American Economic Review, American Economic Association, vol. 96(3), pages 499-522, June.
  3. Giovanni Peri & Susana Iranzo, 2006. "Schooling Externalities, Technology and Productivity:Theory and Evidence from U.S. States," Working Papers 635, University of California, Davis, Department of Economics.
  4. Caselli, Francesco & Feyrer, James, 2005. "The Marginal Product of Capital," CEPR Discussion Papers 5203, C.E.P.R. Discussion Papers.
  5. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
  6. Gundlach, Erich & Rudman, Desmond & Wößmann, Ludger, 2002. "Second thoughts on development accounting," Munich Reprints in Economics 20436, University of Munich, Department of Economics.
  7. Eric A. Hanushek & Lei Zhang, 2009. "Quality-Consistent Estimates of International Schooling and Skill Gradients," Journal of Human Capital, University of Chicago Press, vol. 3(2), pages 107-143.
  8. Eric A. Hanushek & Lei Zhang, 2006. "Quality-Consistent Estimates of International Returns to Skill," NBER Working Papers 12664, National Bureau of Economic Research, Inc.
  9. Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers 2001-11, Department of Economics, Williams College.
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