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Productivity Differences

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Author Info
Acemoglu, Daron
Zilibotti, Fabrizio

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Abstract

Many technologies used by the LDCs are developed in the OECD economies and are designed to make optimal use of the skills of these richer countries' workforces. Differences in the supply of skills create a mismatch between the requirements of these technologies and the skills of LDC workers, and lead to low productivity in the LDCs. Even when all countries have equal access to new technologies, this technology-skill mismatch can lead to sizeable differences in total factor productivity and output per worker. We provide evidence in favour of the cross-industry productivity patterns predicted by our model, and also show that technology-skill mismatch could account for a large fraction of the observed output per worker differences in the data.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2498.

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Date of creation: Jul 2000
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Handle: RePEc:cpr:ceprdp:2498

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Related research
Keywords: Development; Directed Technical Change; Human Capital; Intellectual Property Rights; Labour Productivity; Sectoral TFP Differences; Technology-Skill Mismatch; Total Factor Productivity;

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Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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