The Impact of Intersectoral Labor Reallocation on Economic Growth

28 Pages Posted: 15 Feb 2006

See all articles by Hélène Poirson

Hélène Poirson

International Monetary Fund (IMF) - Research Department

Date Written: June 2000

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.

Keywords: Growth labor reallocation labor efficiency education

JEL Classification: O11 O14 O40

Suggested Citation

Poirson Ward, Helene, The Impact of Intersectoral Labor Reallocation on Economic Growth (June 2000). IMF Working Paper No. 00/104, Available at SSRN: https://ssrn.com/abstract=879675

Helene Poirson Ward (Contact Author)

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
72
Abstract Views
738
rank
392,093
PlumX Metrics