Aggregate Growth and the Efficiency of Labour Reallocation
AbstractWe consider the potential importance of labour market efficiency for aggregate growth. The idea is that efficient labour markets move workers more quickly from low to high productivity sites, thereby raising aggregate productivity growth. We define a measure of labour market efficiency as a structural parameter from a matching function. Using labour market data on 15 OECD countries, we estimate this and show that it has a significant effect on growth. The results are robust to a number of different estimation techniques. The quantitative impact of market efficiency is not trivial.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0580.
Date of creation: Aug 2003
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
growth; labour market efficiency; labour market institutions;
Other versions of this item:
- Burgess, Simon & Mawson, Daniel, 2003. "Aggregate Growth and the Efficiency of Labour Reallocation," CEPR Discussion Papers 3848, C.E.P.R. Discussion Papers.
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
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- Philip, Jung & Moritz, Kuhn, 2011. "The Era of the U.S.-Europe Labor Market Divide: What can we learn?," MPRA Paper 32322, University Library of Munich, Germany.
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