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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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File URL: http://www.sciencedirect.com/science/article/pii/S0165176513000700
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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. Douglas Gollin & David Lagakos & Michael E. Waugh, 2014. "The Agricultural Productivity Gap," The Quarterly Journal of Economics, Oxford University Press, vol. 129(2), pages 939-993.
  2. Margarida Duarte & Diego Restuccia, 2010. "The Role of the Structural Transformation in Aggregate Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 129-173.
  3. 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.
  4. Gollin, Douglas, 2010. "Agricultural Productivity and Economic Growth," Handbook of Agricultural Economics, Elsevier.
  5. Dennis, Benjamin N. & Iscan, Talan B., 2009. "Engel versus Baumol: Accounting for structural change using two centuries of U.S. data," Explorations in Economic History, Elsevier, vol. 46(2), pages 186-202, April.
  6. 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.
  7. Gary D. Hansen & Edward C. Prescott, 1999. "Malthus to Solow," Staff Report 257, Federal Reserve Bank of Minneapolis.
  8. John Laitner, 2000. "Structural Change and Economic Growth," Review of Economic Studies, Oxford University Press, vol. 67(3), pages 545-561.
  9. Stokey, Nancy L., 2001. "A quantitative model of the British industrial revolution, 1780-1850," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 55(1), pages 55-109, December.
  10. 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.
  11. Douglas Gollin & Stephen Parente & Richard Rogerson, 2002. "The Role of Agriculture in Development," Department of Economics Working Papers 2002-09, Department of Economics, Williams College.
  12. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  13. 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.
  14. Morten O. Ravn & Harald Uhlig, 2002. "On adjusting the Hodrick-Prescott filter for the frequency of observations," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 371-375.
  15. 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.
  16. Margarida Duarte & Diego Restuccia, 2007. "The structural transformation and aggregate productivity in Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 6(1), pages 23-46, April.
  17. Vollrath, Dietrich, 2009. "How important are dual economy effects for aggregate productivity?," Journal of Development Economics, Elsevier, vol. 88(2), pages 325-334, March.
  18. 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.
  19. David Lagakos & Michael E. Waugh, 2013. "Selection, Agriculture, and Cross-Country Productivity Differences," American Economic Review, American Economic Association, vol. 103(2), pages 948-80, April.
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