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Structural drivers of productivity and employment growth: a decomposition analysis for 81 countries

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  • Leanne Roncolato
  • David Kucera

Abstract

The paper uses accounting methods to decompose aggregate labour productivity and employment growth into their sectoral components as well as into within-sector and employment reallocation effects for a sample of 81 developed and developing countries using data going back to the mid-1980s. Key findings are that aggregate labour productivity growth for developing countries taken together is driven as much by services as by industry, in spite of strong differences between countries, and that within-sector effects on aggregate labour productivity growth are more important than employment reallocation effects, a pattern that holds for all regions.

Suggested Citation

  • Leanne Roncolato & David Kucera, 2014. "Structural drivers of productivity and employment growth: a decomposition analysis for 81 countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(2), pages 399-424.
    • Handle: RePEc:oup:cambje:v:38:y:2014:i:2:p:399-424.
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    File URL: http://hdl.handle.net/10.1093/cje/bet044
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    Cited by:

    1. Liu, Laihui & An, Suxia, 2023. "Deindustrialization and the incidence of poverty: Empirical evidence from developing countries," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    2. Fukao, Kyoji & Paul, Saumik, 2018. "A Framework to Study the Role of Structural Transformation in Productivity Growth and Regional Convergence," ADBI Working Papers 833, Asian Development Bank Institute.
    3. Tregenna, Fiona, 2015. "Deindustrialisation, structural change and sustainable economic growth," MERIT Working Papers 2015-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Nelson Henrique Barbosa Filho, 2016. "Elasticity Of Substitution And Social Conflict: A Structuralist Note On Piketty’S Capital In The 21st Century," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 074, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Xiao Jiang & Jose Caraballo‐Cueto & Chau Nguyen, 2020. "Balanced versus unbalanced growth: Revisiting the forgotten debate with new empirics," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1430-1446, November.
    6. Aggarwal, Aradhna, 2019. "How has globalisation affected the economic growth, structural change and poverty reduction linkages? Insights from international comparisons," MERIT Working Papers 2019-015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Ilya B. Voskoboynikov, 2020. "Structural Change, Expanding Informality and Labor Productivity Growth in Russia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 394-417, June.
    8. Sheba Tejani & David Kucera, 2021. "Defeminization, Structural Transformation and Technological Upgrading in Manufacturing," Development and Change, International Institute of Social Studies, vol. 52(3), pages 533-573, May.
    9. Vu, Khuong & Hartley, Kris, 2022. "Sources of transport sector labor productivity performance in industrialized countries: Insights from a decomposition analysis," Transport Policy, Elsevier, vol. 129(C), pages 204-218.
    10. Romana Gargano & Ferdinando Ofria, 2021. "The influence of BES territorial indicators on economic performance of manufacturing firms," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 75(4), pages 42-52, October-D.
    11. Islam, Rizwanul, 2017. "Structural Transformation and Absorption of Surplus Labour," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 40(3-4), pages 105-136, Sep-Dec.
    12. Silveira, Fabricio, 2022. "Firm size distribution and growth: An empirical investigation," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 422-434.
    13. Peter Tyler & Emil Evenhuis & Ron Martin & Peter Sunley & Ben Gardiner, 2017. "Growing apart? Structural transformation and the uneven development of British cities," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 425-454.
    14. Fukao, Kyoji & 深尾, 京司 & Paul, Saumik, 2017. "The Role of Structural Transformation in Regional Convergence in Japan: 1874-2008," SSPJ Discussion Paper Series DP17-001, Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University.
    15. Raúl Vázquez López, 2016. "Do Technology-Intensive Activities Drive Industrial Labor Productivity Levels?," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 123-150, November.
    16. Kucera, David & Tejani, Sheba, 2014. "Feminization, Defeminization, and Structural Change in Manufacturing," World Development, Elsevier, vol. 64(C), pages 569-582.
    17. Peter Mayerhofer, 2022. "Vorarlbergs Wirtschaft im europäischen Konkurrenzumfeld. Bericht zur internationalen Wettbewerbsfähigkeit 2022," WIFO Studies, WIFO, number 69424, February.
    18. Millemaci, Emanuele & Ofria, Ferdinando, 2016. "Supply and demand-side determinants of productivity growth in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 138-146.
    19. Di Meglio, Gisela & Gallego, Jorge, 2022. "Disentangling services in developing regions: A test of Kaldor's first and second laws," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 221-229.
    20. Wenbin Shao & Fangyi Li & Zhaoyang Ye & Zhipeng Tang & Wu Xie & Yu Bai & Shanlin Yang, 2019. "Inter-Regional Spillover of Carbon Emissions and Employment in China: Is It Positive or Negative?," Sustainability, MDPI, vol. 11(13), pages 1-14, July.
    21. Hanan Morsy & Antoine Levy, 2020. "Growing without changing: A tale of Egypt's weak productivity growth," African Development Review, African Development Bank, vol. 32(3), pages 271-287, September.
    22. Sparreboom, Theo. & Staneva, Anita., 2015. "Structural change, employment and education in Mozambique," ILO Working Papers 994875813402676, International Labour Organization.
    23. Fukao, Kyoji & Paul, Saumik, 2017. "The Role of Structural Transformation in Regional Convergence in Japan: 1874-2008," Discussion Paper Series 665, Institute of Economic Research, Hitotsubashi University.

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