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The Impact of Intersectoral Labor Reallocationon Economic Growth

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  • Hélène Poirson
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    Abstract

    This study seeks to explain economic growth differences in an aggregate production function framework, where labor reallocation from agriculture to modern sectors influences labor efficiency growth. The econometric analysis uses a panel of 65 countries over 1960-90. The results highlight: (a) the differences in labor reallocation impact on growth, controlled for using the intersectoral wedge in labor productivities; (b) the significance of labor reallocation effects, even after controlling for capital accumulation, initial conditions, and country effects; (c) the role of slow labor reallocation in explaining the dummy variable for Sub-Saharan Africa; (d) the role of initial education levels in explaining differences in labor reallocation rates.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 00/104.

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    Length: 27
    Date of creation: 01 Jun 2000
    Date of revision:
    Handle: RePEc:imf:imfwpa:00/104

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    Postal: International Monetary Fund, Washington, DC USA
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    Related research

    Keywords: Economic growth; labor reallocation; labor efficiency; labor productivity; labor force; labor share; labor market; labor productivities; decreasing function; labor market flexibility; human capital accumulation; average productivity growth; labor market reforms; regional growth differences; labor policy; average wage; covariance matrix; labor markets; jobs;

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    Cited by:
    1. Stijepic, Denis & Wagner, Helmut, 2008. "Impacts of Intermediate Trade on Structural Change," MPRA Paper 40841, University Library of Munich, Germany, revised 23 Aug 2012.
    2. Stijepic, Denis & Wagner, Helmut, 2009. "Population-ageing, structural change and productivity growth," MPRA Paper 37005, University Library of Munich, Germany, revised 29 Feb 2012.

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