The Impact of Intersectoral Labor Reallocationon Economic Growth

Author/Editor:

Helene Poirson

Publication Date:

June 1, 2000

Electronic Access:

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Summary:

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.

Series:

Working Paper No. 2000/104

Subject:

Capital accumulation Education Expenditure Labor Labor productivity National accounts Production Public expenditure review

English

Publication Date:

June 1, 2000

ISBN/ISSN:

9781451852752/1018-5941

Stock No:

WPIEA1042000

Pages:

27

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