Why are Latin American workers so strikingly unproductive?
Blame education, corruption and a huge shadow economy
Editor’s note (June 9th): The original headline in this article attracted criticism for the phrase “A land of useless workers”. We have changed it to make clear that we are analysing the social and economic costs of low productivity. Our aim is to draw attention to the structural causes of low average labour productivity in Latin American countries, including powerful oligopolies that mute competition and a large informal sector which forces many businesses to remain subscale. As the article makes clear, all of this is beyond the control of individual Latin Americans, whose living standards have suffered. We end with a call for better policymaking.
This article appeared in the The Americas section of the print edition under the headline “A land of frustrated workers”
More from The Americas
After protests over a stolen election, the goons crack heads
Yet the brazenness of Nicolás Maduro’s theft crosses a line
The plight of Brazil’s indigenous groups worsens
Blame illegal miners, ranchers, loggers, traffickers and an unsympathetic Congress
Will El Mayo’s arrest slow the spread of fentanyl?
The United States nets a very big fish
The strong dollar is hurting exports from Latin America
For three small dollarised economies it has exposed a lack of competitiveness
Cuba is out of supplies and out of ideas
Penury is pushing the island towards Russia and China