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Dualism and cross-country growth regressions

  • Temple, Jonathan
  • Wößmann, Ludger

This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Changes in the structure of employment will raise aggregate productivity when the marginal product of labor varies across sectors. The models in the paper incorporate this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and indicate that the reallocation of labor makes a significant contribution to the international variation in productivity growth.

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Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 19619.

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Date of creation: 2006
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Publication status: Published in Journal of Economic Growth 3 11(2006): pp. 187-228
Handle: RePEc:lmu:muenar:19619
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