The Effects of Climate on Output per Worker: Evidence from the Manufacturing Industry in Colombia

Salazar, Mateo (2012): The Effects of Climate on Output per Worker: Evidence from the Manufacturing Industry in Colombia.

Abstract

This paper quantifies the effect of an increase in temperature and precipitation on the average output per worker in the Colombian manufacturing industry. In order to approach this issue rigorously, a methodology is developed with a theoretical model and an empirical estimation. The estimation of the empirical model is done with economic data from the Annual Survey of the Manufacturing Industry, the Monthly Manufacturing Sample and climate data from IDEAM. The results do not allow to reject a negative effect of temperature and a positive effect of precipitation on average output per worker.

• Item Type: MPRA Paper
• Language: English
• Keywords: Climate Change, Ergonomics, Productivity.
• Subjects: J - Labor and Demographic Economics > J8 - Labor Standards: National and International > J81 - Working Conditions; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O44 - Environment and Growth; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming

References

[Acemoglu et al., 2002] Acemoglu, D., Johnson, S., and Robinson, J. (2002). Reversal of fortune: Geography and institutions in making of modern world income distribution.

[Arrow, 2004] Arrow, K. (2004). Are we consuming too much? Journal of Economic Per pective, pages 147-172.

[Barro and i Martin, 1995] Barro, R. and i Martin, X. S. (1995.). Economic Growth. McGraw-Hill.

[Bogliacino and Pianta, 2009] Bogliacino, F. and Pianta, M. (2009). The impact of innovation on labour productivity growth in european industries: Does it depend on firms' competitiveness strategies? ITPS working paper.

[Bond et al., 2009] Bond, S., Leblebiciog, A., and Schiantarelli, F. (2009). Capital accumulation and growth:a new look at the empirical evidence. Journal of Applied Econometrics.

[Cadena et al., 2012] Cadena, A., Rosales, R., M.Salazar, Rojas, A., R.Delgado, and Espinosa, M. (2012). Maps: Colombia case study. Working Paper.

[Caselli et al., 1996] Caselli, F., Esquivel, G., and Lefort, F. (1996). Reopening the convergence debate: A new look at cross-country growth empirics. Journal of Economic Growth.

[Daly, 1996] Daly, H. (1996). Beyond Growth: The Economics of Sustainable Development. Boston Beacon.

[DANE, 2004] DANE (1993-2004). Annual manufacturing industry.

[DANE, 2011] DANE (2001-2011). Monthly manufacturing sample. 23

[Dell et al., 2008] Dell, M., Jones, B., and Olken, B. (2008). Climate change and economic growth: Evidence from the last half century. NBER, page Working Paper 14132.

[Dell et al., 2009] Dell, M., Jones, B., and Olken, B. (2009). Temperature and income: Reconciling new cross-sectional and panel estimates. American Economic Review: Papers & Proceedings.

[Gallup et al., 1999] Gallup, J. L., Sachs, J. D., and Mellinger, A. (1999). Geography and economic development. CID Working Paper.

[Graff and Neidell, 2010] Graff, J. and Neidell, M. (2010). Temperature and the allocation of time: Implications for climate change. NBER Working Paper 15717.

[Greene, 2008] Greene, W. (2008). Econometric Analysis. Pearson.

[Hall and Jones, 1999] Hall, R. and Jones (1999). Why do come countries produce so much more output per worker than others? NBER.

[Hijmans et al., 2005] Hijmans, R., Cameron., J., Parra, P., Jones, and Jarvis, A. (2005). Very high resolution interpolated climate surfaces for global land areas. International Journal of Climatology.

[Hsiang, 2010] Hsiang, S. (2010). Temperatures and cyclones strongly associated with economic production in the caribbean and central america. PNAS, pages 15367-15372.

[IDEAM, 2011] IDEAM (2011). Temperature and precipitation data.

[Mankiw et al., 1992] Mankiw, G., Romer, D., and Weil, D. N. (1992). A contribution to the empirics of economic growth. The Quarterly Journal of Economics.

[Nordhaus, 2006] Nordhaus, W. (2006). Geography and macroeconomics: New data and new findings. PNAS.

[Pilcher et al., 2002] Pilcher, J., Nadler, E., and Bush, C. (2002). Effects of hot and cold temperature exposure on performance: a meta-analytic review. Ergonomics.

[Ramsey, 1928] Ramsey, F. (1928). A mathematical theory of saving. Economic Journal, pages 543{559.

[Rodrik et al., 2002] Rodrik, D., Subramanian, A., and Trebbi, F. (2002). Institutions ruel: the primacy of institutions over geography and integration in economic development.

[Rosenthal and Jacobson, 1992] Rosenthal, R. and Jacobson, L. (1992). Pygmalion in the classroom: teacher expectation and pupils' intellectual development. Crown House Publishing Limited.

[Sachs, 2003] Sachs, J. (2003). Institution don't rule: direct effects of geography on per capita income. NBER Working Paper.

[Sachs and Warner, 1997] Sachs, J. D. and Warner, A. M. (1997). Sources of slow growth in african economies. Journal of African Economies.

[Smith, 1776] Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. London: W. Strahan and T. Cadell.

[Sanchez and Acosta, 2001] Sanchez, F. and Acosta, P. (2001). Proyecto indicadores de competitividad: Colombia. Proyecto Andino de Competitividad. Documento de trabajo.

[Solow, 1956] Solow, R. (1956). A contribution to the theory of economic growth. Quaterly Journal of Economics, pages 65{94.

[Stern, 2006] Stern, N. (2006). Stern review: The economics of climate change. Technical report, Cambridge: Cambridge University Press.

[Tol, 2009] Tol, R. (2009). The economic effects of climate change. pages 29{51.