Skills and Productivity in Developing Countries: New evidence from the textile sector in Colombia
Gutierrez Pineda, Leonardo
Magíster en Economía
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Workers' skills are an important determinant of firm productivity. Yet, empirical evidence on the effects of skills on productivity in developing countries is scarce, mainly due to data limitations. We build a new dataset on skills for the Colombian textile and apparel sector in the spirit of the US - O*Net database and combine it with the Colombian Annual Manufacturing Survey to examine the effect of workers' skills on Total Factor Productivity. This allows the disentangling of the effects of non-routine cognitive skills and non-routine manual skills. We find that higher levels of non-routine cognitive skills are correlated with higher levels of Total Factor Productivity, while higher levels of non-routine manual skills are correlated with lower levels of Total Factor Productivity.