Climatic Conditions, Cultural Diversity, and Labor Productivity

Kiel Inst. of World Economics Working Paper No. 1015

28 Pages Posted: 17 Feb 2001  

Erich Gundlach

University of Hamburg

Ximena Matus-Velasco

University of Kiel - Research Dept. 4 (Development Economics and Global Integration)

Date Written: December 2000

Abstract

Countries with the highest labor productivity overwhelmingly lie in the world's temperate climatic zones far away from the equator. The question we address is whether climatic conditions as measured by distance from the equator remain correlated with labor productivity after other variables are taken into account. We find that climatic conditions do not have a significant impact on labor productivity once we control for factor accumulation and cultural diversity within countries. Our regression results suggest that cultural diversity as measured by the degree of ethnolinguistic fractionalization may severely limit economic development in presently poor countries.

Keywords: productivity, climatic conditions, factor accumulation, ethnolinguistic diversity

JEL Classification: 0 4

Suggested Citation

Gundlach, Erich and Matus-Velasco, Ximena, Climatic Conditions, Cultural Diversity, and Labor Productivity (December 2000). Kiel Inst. of World Economics Working Paper No. 1015. Available at SSRN: https://ssrn.com/abstract=257602 or http://dx.doi.org/10.2139/ssrn.257602

Erich Gundlach (Contact Author)

University of Hamburg ( email )

Department of Economics
Von-Melle-Park 5
Hamburg, 20146
Germany
+49 40 428384589 (Phone)

HOME PAGE: http://www.erichgundlach.de

Ximena Matus-Velasco

University of Kiel - Research Dept. 4 (Development Economics and Global Integration)

P.O. Box 4309
Kiel D-24100
Germany

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