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Sectoral shifts and comovements in employment

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  • Kim, Bae-Geun

Abstract

Sectoral shifts in employment from manufacturing to services are viewed as a structural transformation which occurs over a long period of time. Economists point out that a rapid technological advance in the manufacturing sector relative to that in the service sector is the underlying cause of this phenomenon. However, few have associated this with business cycle analyses. This paper finds that a relatively faster technological advance in the manufacturing sector (named manufacturing-specific technology shock) generates sectoral comovements in employment in the short run while it leads to sectoral shifts in employment in the long run. The behavior of investment is the key to this finding.

Suggested Citation

  • Kim, Bae-Geun, 2020. "Sectoral shifts and comovements in employment," Economics Letters, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:ecolet:v:192:y:2020:i:c:s016517652030152x
    DOI: 10.1016/j.econlet.2020.109208
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    References listed on IDEAS

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    Cited by:

    1. Kim, Bae-Geun, 2023. "Technological advances in manufacturing and their effects on sectoral employment in the Korean economy," Economic Modelling, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    Sectoral shift; Sectoral comovement; Manufacturing-specific technology shock;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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