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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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    Cited by:

    1. Bárány, Zsófia L. & Siegel, Christian, 2020. "Biased technological change and employment reallocation," Labour Economics, Elsevier, vol. 67(C).
    2. 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.
    3. Herrendorf, Berthold & Valentinyi, Ákos, 2022. "Endogenous sector–biased technological change and industrial policy," Economic Modelling, Elsevier, vol. 113(C).
    4. Barany, Zsofia L. & Siegel, Christian, 2017. "Disentangling Occupation- and Sector-specific Technological Change," Economics Series 331, Institute for Advanced Studies.
    5. 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.
    6. Sevinç, Orhun, 2017. "Skill-biased technical change and Labor market polarization:the role of skill heterogeneity within occupations," LSE Research Online Documents on Economics 86147, London School of Economics and Political Science, LSE Library.
    7. 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.
    8. repec:hal:spmain:info:hdl:2441/7vl4otetog8c6aaomlbfjid6fp is not listed on IDEAS
    9. 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.
    10. 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.
    11. Rubini, Loris & Moro, Alessio, 2019. "Stochastic Structural Change," MPRA Paper 96144, University Library of Munich, Germany.
    12. 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).
    13. Todd Schoellman & Bart Hobijn, 2017. "Structural Transformation by Cohort," 2017 Meeting Papers 1417, Society for Economic Dynamics.
    14. 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.
    15. Bolhuis, Marijn, 2019. "Catch-Up Growth and Inter-Industry Productivity Spillovers," MPRA Paper 94730, University Library of Munich, Germany.

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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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