Employment, Capital and Productivity Dynamics: Evidence from the Manufacturing Sector in Uruguay

38 Pages Posted: 13 Sep 2006

See all articles by Nestor Gandelman

Nestor Gandelman

Universidad ORT Uruguay

Carlos Casacuberta

Universidad ORT at Uruguay - Department of Economics

Gabriela Fachola

Universidad ORT at Uruguay

Date Written: September 2006

Abstract

Using a sample of Uruguayan establishments we analyze employment, capital and productivity dynamics over a period with changes in trade policy and in the institutional setting of employment negotiations. Firms performed a technological conversion towards more capital intensive technologies. This brought an increase in labor and total factor productivity. Creation and destruction rates were relatively high and pervasive over time, sectors, size and age. Exits explain a sizeable part of destruction rates. Most of the excess reallocation was due to movements "within" rather than "between" sectors. Thus, high reallocation rates were probably linked to establishment level heterogeneity rather than aggregate shocks.

Keywords: employment and capital reallocation, TFP, Latin-America

Suggested Citation

Gandelman, Nestor and Casacuberta, Carlos and Fachola, Gabriela, Employment, Capital and Productivity Dynamics: Evidence from the Manufacturing Sector in Uruguay (September 2006). Available at SSRN: https://ssrn.com/abstract=929159 or http://dx.doi.org/10.2139/ssrn.929159

Nestor Gandelman (Contact Author)

Universidad ORT Uruguay ( email )

Bulevar España 2633
Montevideo, 11.300
Uruguay

Carlos Casacuberta

Universidad ORT at Uruguay - Department of Economics ( email )

Bulevar Espana 2633
Montevideo, 11300
Uruguay

Gabriela Fachola

Universidad ORT at Uruguay ( email )

Bvar. Espana 2633
Montevideo

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