Template-type: ReDIF-Paper 1.0
Author-Name: Arias Ortiz E.
Author-Email: eariasortiz@iadb.org 
Author-Workplace-Name: Inter-American Development Bank
Author-Name: Crespi, G.
Author-Email: gcrespi@iadb.org
Author-Workplace-Name: Inter-American Development Bank
Author-Name: Rasteletti, A.
Author-Email: arasteletti@iadb.org 
Author-Workplace-Name: Inter-American Development Bank
Author-Name: Vargas, F.
Author-Email: vargas@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Productivity in services in Latin America and the Caribbean
Abstract: This paper studies productivity in Latin America and the Caribbean, with 
	 an emphasis on the service sector. It shows that the low levels of 
	 productivity observed in the region are not only a consequence of low 
	 productivity at the firm level, but also of misallocation of workers 
	 across firms. These problems are more severe in services than in 
	 manufacturing. We also found that the determinants of productivity and 
	 employment growth at the firm level are different in manufacturing and 
	 services. Furthermore, results suggest that institutional factors might 
	 be important for determining productivity growth and resource 
	 allocation, as there are large differences across countries in the 
	 region in the effect of productivity on employment growth as well as on 
	 the speed at which less productive firms can close their productivity  gaps.
Classification-JEL: O40, O47, O54
Keywords: Service sector, Productivity, Employment, Economic growth, Economic 
	 development, Latin America, Caribbean
Series: UNU-MERIT Working Papers
Creation-Date: 20140631
Number: 2014-056
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-056.pdf
File-Format: application/pdf
File-Size: 468 Kb
Handle: RePEc:unm:unumer:2014056