Tuesday, September 4, 2007

Labour productivity

A recent report of the International Labour Organization (ILO) entitled "Key indicators of the Labour Market 5th edition" is being throughly discussed in Brazil today. This report publishes a ranking of countries in terms of the productivity of the labour force. The reason for the noise here under the equator is that the position of Brazil in this ranking got worse in comparison with 10 years ago. To explain this "disappointing" performance, some analysts are blaming the low level of education of the brazilian population. I would like to launch an alternative hypothesis: the low level of education of the brazilian population is not the cause, but the consequence of the "disappointing" behaviour in this list. My intuition tells that the low level of technology in the brazilian enterprises allowed the desconstruction policy applied to the education in the last 20 years: an educated population is not interesting to these low tech industries, since this would require better salaries.
Think about this...
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