IDEAS home Printed from https://ideas.repec.org/p/avs/wpaper/16.html
   My bibliography  Save this paper

Employment, capital and productivity dynamics: evidence from the manufacturing sector in Uruguay

Author

Listed:
  • Carlos Casacuberta

    (Universidad de la República. Facultad de Ciencias Sociales. Departamento de Economía)

  • Gabriela Fachola

    (Universidad de la República. Facultad de Ciencias Sociales. Departamento de Economía)

  • Nestor Gandelman

    (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía)

Abstract

This paper studies the employment, capital and productiviy dynamics in the uruguayan manufacturing sector between 1982 and 1995. over this period in Uruguay there were significant changes in trade policy and in the institutional setting of employment negotiations. Using a sample of establishments, creation, desturction, net creation and reallocation rates for employment and capital were computed, along with estimations fo average employment, capital and total factor productivity. Creation and destruction rates for labor and capital were found to be relatively high and pervasive over time, industry sectors, size and age. Exits and entries explain a sizeable part of job and capital destruction rates. Larger firms although are not those that create most jobs, are the ones with the higher net creation rates. Decomposing excess reallocation rates for emplyment and capital we found that most of the adjustment is due to movements "within" rather than "between" sectors. Thus, the high reallocation rates are probably linked to establishment level heterogeneity rather than aggregate shocks. The uruguayan manufacturing in order to face the trade barrier reductions process performed a technological conversion that implied a substitution of labor for more capital intensive technologies. Such technologies brought about a progressive and systematic increase in labor and total factor productivity.

Suggested Citation

  • Carlos Casacuberta & Gabriela Fachola & Nestor Gandelman, 2004. "Employment, capital and productivity dynamics: evidence from the manufacturing sector in Uruguay," Documentos de Investigación 16, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    • Handle: RePEc:avs:wpaper:16
    as

    Download full text from publisher

    File URL: https://dspace.ort.edu.uy/bitstream/handle/20.500.11968/2828/documentodetrabajo16.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peluffo, Adriana & Silva, Ernesto, 2018. "Innovation and Employment," Conference papers 332986, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Adriana Peluffo, 2011. "Integración regional y difusión de tecnologí­a: el caso uruguayo," Documentos de Trabajo (working papers) 11-10, Instituto de Economía - IECON.
    3. Carlos Casacuberta & Néstor Gandelman, 2015. "Productivity, Exit, and Crisis in the Manufacturing and Service Sectors," The Developing Economies, Institute of Developing Economies, vol. 53(1), pages 27-43, March.
    4. Pablo Fajnzylber & J. Luis Guasch & J. Humberto López, 2009. "Does the Investment Climate Matter? Microeconomic Foundations of Growth in Latin America," World Bank Publications - Books, The World Bank Group, number 6300.
    5. Carlos Casacuberta & Néstor Gandelman, 2012. "Protection, Openness, and Factor Adjustment: Evidence from the Manufacturing Sector in Uruguay," Economic Development and Cultural Change, University of Chicago Press, vol. 60(3), pages 597-629.
    6. Néstor Gandelman & Verónica Alaimo & Marcelo Olarreaga & José Luis Guasch & Daniel Lederman & Carlos Casacuberta & Ana María Oviedo & J. Humberto López & Inessa Love & Guido Porto & Pablo Fajnzylber &, 2009. "Does the Investment Climate Matter?: Microeconomic Foundations of Growth in Latin America," IDB Publications (Books), Inter-American Development Bank, number 60058 edited by José Luis Guasch & J. Humberto López & Pablo Fajnzylber, February.
    7. World Bank, 2007. "Economic Performance in Latin America and the Caribbean : A Microeconomic Perspective," World Bank Publications - Reports 7857, The World Bank Group.
    8. Gandelman, Néstor & Alaimo, Veronica & Olarreaga, Marcelo & Guasch, José Luis & Lederman, Daniel & Casacuberta, Carlos & Oviedo, Ana María & López, J. Humberto & Love, Inessa & Porto, Guido & Fajnzylb, 2009. "Does the Investment Climate Matter?: Microeconomic Foundations of Growth in Latin America," IDB Publications (Books), Inter-American Development Bank, number 359, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:avs:wpaper:16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Verónica Rodríguez (email available below). General contact details of provider: https://edirc.repec.org/data/faortuy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.