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De-agriculturalization as a result of productivity growth in agriculture

  • Üngör, Murat

This paper explores the secular decline in the employment share in agriculture as a result of productivity growth in the agricultural sector. I study an equation that states that employment share in agriculture is determined by the subsistence constraint and productivity in agriculture. Given the calibrated value for subsistence level of consumption in agriculture, labor productivity in this sector implies a share of employment in agriculture in the model that turns out to be very close to the data for a variety of countries between 1963 and 2005.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 119 (2013)
Issue (Month): 2 ()
Pages: 141-145

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Handle: RePEc:eee:ecolet:v:119:y:2013:i:2:p:141-145
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Diego Restuccia & Dennis Tao Yang & Xiaodong Zhu, 2003. "Agriculture and Aggregate Productivity: A Quantitative Cross-Country Analysis," Working Papers diegor-03-01, University of Toronto, Department of Economics.
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  11. Foellmi, Reto & Zweimüller, Josef, 2008. "Structural change, Engel's consumption cycles and Kaldor's facts of economic growth," Journal of Monetary Economics, Elsevier, vol. 55(7), pages 1317-1328, October.
  12. Mike Waugh & David Lagakos & Doug Gollin, 2011. "The Agricultural Productivity Gap in Developing Countries," 2011 Meeting Papers 1397, Society for Economic Dynamics.
  13. Laitner, John, 2000. "Structural Change and Economic Growth," Review of Economic Studies, Wiley Blackwell, vol. 67(3), pages 545-61, July.
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  17. Douglas Gollin & David Lagakos & Michael E. Waugh, 2013. "The Agricultural Productivity Gap," NBER Working Papers 19628, National Bureau of Economic Research, Inc.
  18. Christopher B. Barrett & Michael R. Carter & C. Peter Timmer, 2010. "A Century-Long Perspective on Agricultural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 447-468.
  19. Johnston, Bruce F, 1970. "Agriculture and Structural Transformation in Developing Countries: A Survey of Research," Journal of Economic Literature, American Economic Association, vol. 8(2), pages 369-404, June.
  20. Gollin, Douglas & Parente, Stephen L. & Rogerson, Richard, 2007. "The food problem and the evolution of international income levels," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1230-1255, May.
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