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

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.