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Structural drivers of productivity and employment growth: a decomposition analysis for 81 countries

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  • Leanne Roncolato
  • David Kucera

Abstract

The paper uses accounting methods to decompose aggregate labour productivity and employment growth into their sectoral components as well as into within-sector and employment reallocation effects for a sample of 81 developed and developing countries using data going back to the mid-1980s. Key findings are that aggregate labour productivity growth for developing countries taken together is driven as much by services as by industry, in spite of strong differences between countries, and that within-sector effects on aggregate labour productivity growth are more important than employment reallocation effects, a pattern that holds for all regions.

Suggested Citation

  • Leanne Roncolato & David Kucera, 2014. "Structural drivers of productivity and employment growth: a decomposition analysis for 81 countries," Cambridge Journal of Economics, Oxford University Press, vol. 38(2), pages 399-424.
  • Handle: RePEc:oup:cambje:v:38:y:2014:i:2:p:399-424.
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    File URL: http://hdl.handle.net/10.1093/cje/bet044
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    Cited by:

    1. Fukao, Kyoji & Paul, Saumik, 2018. "A Framework to Study the Role of Structural Transformation in Productivity Growth and Regional Convergence," ADBI Working Papers 833, Asian Development Bank Institute.
    2. repec:oup:cjrecs:v:10:y:2017:i:3:p:425-454. is not listed on IDEAS
    3. Tregenna, Fiona, 2015. "Deindustrialisation, structural change and sustainable economic growth," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Nelson Henrique Barbosa Filho, 2016. "Elasticity Of Substitution And Social Conflict: A Structuralist Note On Piketty’S Capital In The 21st Century," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 074, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Fukao, Kyoji & Paul, Saumik, 2017. "The Role of Structural Transformation in Regional Convergence in Japan: 1874-2008," SSPJ Discussion Paper Series DP17-001, Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University.
    6. Raúl Vázquez López, 2016. "Do Technology-Intensive Activities Drive Industrial Labor Productivity Levels?," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 123-150, November.
    7. Aggarwal, Aradhna, 2019. "How has globalisation affected the economic growth, structural change and poverty reduction linkages? Insights from international comparisons," MERIT Working Papers 015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Millemaci, Emanuele & Ofria, Ferdinando, 2016. "Supply and demand-side determinants of productivity growth in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 138-146.
    9. repec:gam:jsusta:v:11:y:2019:i:13:p:3622-:d:244817 is not listed on IDEAS
    10. Hanan Morsy & Antoine Levy & Clara Sanchez, 2015. "Growing Without Changing: a Tale of Egypt's Weak Productivity Growth," Working Papers 940, Economic Research Forum, revised Sep 2015.
    11. Sparreboom, Theo. & Staneva, Anita., 2015. "Structural change, employment and education in Mozambique," ILO Working Papers 994875813402676, International Labour Organization.
    12. Voskoboynikov, Ilya B., 2017. "Structural change, expanding informality and labour productivity growth in Russia," BOFIT Discussion Papers 18/2017, Bank of Finland, Institute for Economies in Transition.
    13. Fukao, Kyoji & Paul, Saumik, 2017. "The Role of Structural Transformation in Regional Convergence in Japan: 1874-2008," Discussion Paper Series 665, Institute of Economic Research, Hitotsubashi University.

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