What Explains Latin America's Low Share of Industrial Employment?
This paper investigates the relative importance of different channels in explaining the low share of industrial employment in Latin America relative to the economies that employ a large share of the workforce in industry. Differences in domestic fi...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/444171553534517423/What-Explains-Latin-Americas-Low-Share-of-Industrial-Employment http://hdl.handle.net/10986/31450 |
| Summary: | This paper investigates the relative
importance of different channels in explaining the low share
of industrial employment in Latin America relative to the
economies that employ a large share of the workforce in
industry. Differences in domestic final consumption shares
play a pivotal role and can account for 50-70 percent of the
industrial share gap. The paper finds limited support for
the comparative advantage hypothesis, as differences in
trading patterns account for less than 15 percent of the
gap. More important are the differences in sectoral linkages
and wage gaps which account for more than 30 percent of the
industrial employment gap individually. |
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