Geography and Labor Market Performance

Using data from 76 countries and a large number of controls, this paper analyses how geographical characteristics affect labor market performance. We find that different geographical characteristics have very different effects. While a larger share of highly fertile soil appears to lower employment and increase unemployment, more abundant mineral resources seem to increase employment without affecting unemployment. A larger share of tropical area is associated with higher employment and lower unemployment rates. Neither proximity to the ocean, or to ocean-navigable rivers, nor elevation appears to affect labor market outcomes.