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The Impact of Intersectoral Labor Reallocationon Economic Growth

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  • Helene Poirson Ward

Abstract

This study seeks to explain economic growth differences in an aggregate production function framework, where labor reallocation from agriculture to modern sectors influences labor efficiency growth. The econometric analysis uses a panel of 65 countries over 1960-90. The results highlight: (a) the differences in labor reallocation impact on growth, controlled for using the intersectoral wedge in labor productivities; (b) the significance of labor reallocation effects, even after controlling for capital accumulation, initial conditions, and country effects; (c) the role of slow labor reallocation in explaining the dummy variable for Sub-Saharan Africa; (d) the role of initial education levels in explaining differences in labor reallocation rates.

Suggested Citation

  • Helene Poirson Ward, 2000. "The Impact of Intersectoral Labor Reallocationon Economic Growth," IMF Working Papers 00/104, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:00/104
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    Cited by:

    1. Stijepic, Denis & Wagner, Helmut, 2008. "Impacts of Intermediate Trade on Structural Change," MPRA Paper 40841, University Library of Munich, Germany, revised 23 Aug 2012.
    2. Stijepic, Denis & Wagner, Helmut, 2009. "Population-ageing, structural change and productivity growth," MPRA Paper 37005, University Library of Munich, Germany, revised 29 Feb 2012.

    More about this item

    Keywords

    Education; Economic growth; Labor policy; Growth; labor reallocation; labor efficiency; labor productivity; labor force; labor share;

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