The Role of Sectoral Growth Patterns in Labor Market Development
AbstractThis paper investigates the relationship between sectoral growth patterns and employment outcomes. A broad cross-country analysis reveals that in middle-income countries, employment responds more to growth in less productive and more labor-intensive sectors. Employment in middle-income countries is susceptible to a resource curse, and grows rapidly in response to manufacturing and export manufacturing growth. Within Brazil, Indonesia, and Mexico, the effects of different sectoral growth patterns are context dependent, but differences in sectoral growth effects on employment and wages are substantially reduced in states or provinces with higher measured labor mobility. Consistent with this, aggregate employment and wage effects of growth by sector are close to uniform when examined over longer time horizons, after labor has an opportunity to adjust across sectors. The results reinforce the importance of growth in more labor-intensive sectors, and suggest that job mobility may be an important mechanism to diffuse the benefits of capital-intensive growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6926.
Length: 56 pages
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Arias-Vazquez , Francisco Javier & Lee, Jean N. & Newhouse, David, 2012. "The role of sectoral growth patterns in labor market development," Policy Research Working Paper Series 6250, The World Bank.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-27 (All new papers)
- NEP-LAM-2012-10-27 (Central & South America)
- NEP-LTV-2012-10-27 (Unemployment, Inequality & Poverty)
- NEP-SEA-2012-10-27 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
- James Thurlow & Peter Wobst, 2006. "Not All Growth is Equally Good for the Poor: The Case of Zambia," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 603-625, December.
- Ferreira, Francisco H.G. & Leite, Phillippe G. & Ravallion, Martin, 2010.
"Poverty reduction without economic growth?: Explaining Brazil's poverty dynamics, 1985-2004,"
Journal of Development Economics,
Elsevier, vol. 93(1), pages 20-36, September.
- Ferreira, Francisco H. G. & Leite, Phillippe G. & Ravallion, Martin, 2007. "Poverty reduction without economic growth ? explaining Brazil's poverty dynamics, 1985-2004," Policy Research Working Paper Series 4431, The World Bank.
- Sachs, Jeffrey D. & Warner, Andrew M., 1999. "The big push, natural resource booms and growth," Journal of Development Economics, Elsevier, vol. 59(1), pages 43-76, June.
- Francesco Caselli & Guy Michaels, 2013.
"Do Oil Windfalls Improve Living Standards? Evidence from Brazil,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 5(1), pages 208-38, January.
- Francesco Caselli & Guy Michaels, 2009. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," CEP Discussion Papers dp0960, Centre for Economic Performance, LSE.
- Francesco Caselli & Guy Michaels, 2009. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," NBER Working Papers 15550, National Bureau of Economic Research, Inc.
- Franceso Caselli & Guy Michaels, 2009. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," OxCarre Working Papers 028, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Francesco Caselli & Guy Michaels, 2009. "Do oil windfalls improve living standards?: evidence from Brazil," LSE Research Online Documents on Economics 28691, London School of Economics and Political Science, LSE Library.
- Caselli, Francesco & Michaels, Guy, 2009. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," CEPR Discussion Papers 7579, C.E.P.R. Discussion Papers.
- Alvarez-Cuadrado, Francisco & Poschke, Markus, 2009.
"Structural Change out of Agriculture: Labor Push versus Labor Pull,"
IZA Discussion Papers
4247, Institute for the Study of Labor (IZA).
- Francisco Alvarez-Cuadrado & Markus Poschke, 2011. "Structural Change Out of Agriculture: Labor Push versus Labor Pull," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(3), pages 127-58, July.
- Francisco Alvarez-Cuadrado & Markus Poschke, 2009. "Structural Change Out Of Agriculture: Labor Push Versus Labor Pull," Departmental Working Papers 2009-08, McGill University, Department of Economics.
- Suryahadi, Asep & Suryadarma, Daniel & Sumarto, Sudarno, 2009. "The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 89(1), pages 109-117, May.
- Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
- Christiaensen,Luc & Demery,Lionel & Kuhl, Jesper, 2010.
"The (Evolving) Role of Agriculture in Poverty Reduction: An Empirical Perspective,"
Working Paper Series
UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
- Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
- Gaurav Datt & Martin Ravallion, 2011.
"Has India's Economic Growth Become More Pro-Poor in the Wake of Economic Reforms?,"
World Bank Economic Review,
World Bank Group, vol. 25(2), pages 157-189, February.
- Datt, Gaurav & Ravallion, Martin, 2009. "Has India's economic growth become more pro-poor in the wake of economic reforms ?," Policy Research Working Paper Series 5103, The World Bank.
- repec:ilo:esbook:ebook9 is not listed on IDEAS
- Frederick Van der Ploeg, 2010.
"Natural Resources: Curse or Blessing?,"
CESifo Working Paper Series
3125, CESifo Group Munich.
- Gutierrez, Catalina & Orecchia, Carlo & Paci, Pierella & Serneels, Pieter, 2007. "Does employment generation really matter for poverty reduction ?," Policy Research Working Paper Series 4432, The World Bank.
- Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
- Kraay, Aart, 2006. "When is growth pro-poor? Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 80(1), pages 198-227, June.
- Oeindrila Dube & Juan F. Vargas, 2013. "Commodity Price Shocks and Civil Conflict: Evidence from Colombia," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1384-1421.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.