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Structural Transformation of Occupation Employment

Author

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  • Georg Duernecker

    (University of Mannheim)

  • Berthold Herrendorf

    (Arizona State University)

Abstract

We provide evidence on structural transformation from censuses covering three quarters of the world population. As countries develop, the standard patterns of labor reallocation hold for broad categories of both industries ("sectors") and occupations while the employment shares of the service occupations rise in all sectors. We propose a model of structural transformation with sectors and occupations that is consistent with these patterns. The key ingredient of our model is uneven, occupation-specific technological progress. We show that our model is useful for predicting changes in the occupation composition and for understanding why sectoral labor productivity growth has slowed.

Suggested Citation

  • Georg Duernecker & Berthold Herrendorf, 2017. "Structural Transformation of Occupation Employment," 2017 Meeting Papers 1239, Society for Economic Dynamics.
    • Handle: RePEc:red:sed017:1239
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    References listed on IDEAS

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    Cited by:

    1. Bárány, Zsófia L. & Siegel, Christian, 2020. "Biased technological change and employment reallocation," Labour Economics, Elsevier, vol. 67(C).
    2. Sen, A., 2024. "Structural Change at a Disaggregated Level: Sectoral Heterogeneity Matters," Cambridge Working Papers in Economics 2415, Faculty of Economics, University of Cambridge.
    3. Xue, Jianpo & Yip, Chong K., 2018. "Home production, balanced-budget taxation and economic (in)stability," Journal of Macroeconomics, Elsevier, vol. 56(C), pages 231-242.
    4. Rana Hasan & Rhea Molato, 2019. "Wages Over the Course of Structural Transformation: Evidence from India," Asian Development Review, MIT Press, vol. 36(2), pages 131-158, September.
    5. Fabio Cerina & Alessio Moro & Michelle Rendall, 2021. "The Role Of Gender In Employment Polarization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(4), pages 1655-1691, November.
    6. repec:hal:spmain:info:hdl:2441/7vl4otetog8c6aaomlbfjid6fp is not listed on IDEAS
    7. Andrés Erosa & Luisa Fuster & Gueorgui Kambourov & Richard Rogerson, 2022. "Hours, Occupations, and Gender Differences in Labor Market Outcomes," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(3), pages 543-590, July.
    8. Zsofia Barany & Christian Siegel, 2021. "Engines of sectoral labor productivity growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 39, pages 304-343, January.
    9. Barany, Zsofia L. & Siegel, Christian, 2017. "Disentangling Occupation- and Sector-specific Technological Change," Economics Series 331, Institute for Advanced Studies.
    10. Paul Gaggl & Aspen Gorry & Christian vom Lehn, 2023. "Structural Change in Production Networks and Economic Growth," CESifo Working Paper Series 10460, CESifo.
    11. Herrendorf, Berthold & Valentinyi, Ákos, 2022. "Endogenous sector–biased technological change and industrial policy," Economic Modelling, Elsevier, vol. 113(C).
    12. Sen, A., 2024. "Structural Change at a Disaggregated Level: Sectoral Heterogeneity Matters," Janeway Institute Working Papers 2410, Faculty of Economics, University of Cambridge.
    13. Duernecker, Georg & Herrendorf, Berthold, 2018. "On the allocation of time – A quantitative analysis of the roles of taxes and productivities," European Economic Review, Elsevier, vol. 102(C), pages 169-187.
    14. Lee, Tim & Shin, Yongseok, 2017. "Horizonatal and Vertical Polarization: Task-Specific Technological Change in a Multi-Sector Economy," TSE Working Papers 17-800, Toulouse School of Economics (TSE).
    15. Bolhuis, Marijn, 2019. "Catch-Up Growth and Inter-Industry Productivity Spillovers," MPRA Paper 94730, University Library of Munich, Germany.
    16. Rubini, Loris & Moro, Alessio, 2019. "Stochastic Structural Change," MPRA Paper 96144, University Library of Munich, Germany.
    17. Werner Pena & Christian Siegel, 2023. "Routine-biased technical change, structure of employment, and cross-country income differences," Studies in Economics 2301, School of Economics, University of Kent.
    18. Orhun Sevinc, 2017. "Skill-Biased Technical Change and Labor Market Polarization: The Role of Skill Heterogeneity Within Occupations," Discussion Papers 1728, Centre for Macroeconomics (CFM).
    19. Todd Schoellman & Bart Hobijn, 2017. "Structural Transformation by Cohort," 2017 Meeting Papers 1417, Society for Economic Dynamics.

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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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