Cross-country income convergence revisited
We reassess the convergence properties of the cross-country distribution of income and its determinants using the dataset constructed by Klenow and Rodriguez-Clare (2005) and our updated version of the same data. Consistent with the literature, the ergodic distribution of output per worker features separate convergence clubs. In contrast to previous findings, productivity display convergence in the long-run. The long-run distribution of human capital is multi-modal.
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