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Changes in the World Distribution of Output Per Worker, 1960-1998: How a Standard Decomposition Tells an Unorthodox Story

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Author Info

  • Paul Beaudry

    (University of British Columbia)

  • Fabrice Collard

    (CNRS-GREMAQ and IDEI)

  • David A. Green

    (University of British Columbia)

Abstract

Why have some countries done so much better than others over the recent past? This paper sheds light on this issue by providing a decomposition of the change in the distribution of output per worker across countries over the period 1960-1998. We find that most of the change in shape of the world distribution of income can be accounted for by a very substantial increase in the social returns to capital accumulation. In contrast, we do not find significant effects coming through changes in the effect of initial conditions or through increases in the importance of education. © 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/003465305775098116
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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 87 (2005)
Issue (Month): 4 (November)
Pages: 741-753

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Handle: RePEc:tpr:restat:v:87:y:2005:i:4:p:741-753

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. Amélie Charles & Olivier Darne & Jean-François Hoarau, 2012. "Convergence of real per capita GDP within COMESA countries: A panel unit root evidence," The Annals of Regional Science, Springer, vol. 49(1), pages 53-71, August.
  2. Davide Fiaschi, Andrea Mario Lavezzi and Angela Parenti, 2009. "Counterfactual Distribution Dynamics across European Regions," Discussion Papers 2009/85, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  3. Gordon Anderson & Teng Wah Leo & Oliver Linton, 2010. "Making Inferences About Rich Country - Poor Country Convergence: The Polarization Trapezoid and Overlap measures," Working Papers tecipa-387, University of Toronto, Department of Economics.

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