Published on Jobs and Development

Would Better Job Conditions Boost Latin America’s Productivity?

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Juan Chaparro is a PhD student in the Department of Applied Economics at University of Minnesota.

As Latin America looks for ways to boost its low productivity, a new study by Eduardo Lora (former Chief Economist, Inter-American Development Bank) and Juan Chaparro (PhD student, Department of Applied Economics, University of Minnesota) suggests that the answer might lie in creating a better job environment.

Construction worker for the Panama Canal extension project, 2012. Photo credit: Flickr @Gerardo Pesantez / World Bank Photo Collection (

Chaparro tells the JKP that first they developed a model to better understand the relationship between job conditions, effort, wages, and productivity. Then they tested predictions from the model with individual-level data from the Gallup World Poll for 18 Latin American countries. Chaparro says the results are quite encouraging — better job conditions, created through identity-enhancing human resource management practices, are conducive to higher labor income and productivity.

This post was first published on the Jobs Knowledge Platform.


Juan Chaparro

Ph.D Candidate, University of Minnesota

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