In many Latin American manufacturing sectors, productivity rose through technological upgrading and capital accumulation rather than employment growth (a 'rationalization' of production), and the labor displaced moved to less productive informal services rather than to more productive parts of the economy.

causalpending

Speaker

Dani Rodrik

Evidence Quote

we get this phenomenon of rationalization so in a part of the increase in productivity is used to the rationalization of production... there has been a massive movement in the wrong direction

Source

Dani Rodrik on Globalization, Development, and Employment 04/11/2011EconTalk
Created: 6/16/2026, 2:24:26 PM

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