The Impact of Intersectoral Labor Reallocationon Economic Growth

IMF Working Papers, June 1, 2000

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The Impact of Intersectoral Labor Reallocationon Economic Growth

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Bibliographic details

• Authors: Hélène Poirson
• Published: June 1, 2000
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451852752.001

Study overview

• Objective: Explain economic growth differences in an aggregate production function framework where labor reallocation from agriculture to modern sectors influences labor efficiency growth.
• Time frame and sample: panel of 65 countries over 1960-90.
• Author and date: By Hélène Poirson, June 1, 2000.
• Type: IMF Working Paper.

Methodology

• Framework: Aggregate production function augmented to capture labor reallocation effects on labor efficiency growth.
• Econometric approach: Panel analysis controlling for capital accumulation, initial conditions, and country effects.
• Key variable constructs referenced: intersectoral wedge in labor productivities; labor reallocation variable; labor efficiency index; labor productivity gap.

Key findings

• The analysis highlights differences in labor reallocation impact on growth, controlled for using the intersectoral wedge in labor productivities.
• Labor reallocation effects remain significant even after controlling for capital accumulation, initial conditions, and country effects.
• Slow labor reallocation helps explain the Sub-Saharan Africa dummy variable in the regressions.
• Initial education levels play a role in explaining differences in labor reallocation rates.

Subjects and keywords

• Subjects: Capital accumulation, Education, Expenditure, Labor, Labor productivity, National accounts, Production, Public expenditure review.
• Keywords: Africa, Capital accumulation, country effect, East Asia, education, Growth, growth rate, labor efficiency, labor efficiency index, Labor productivity, labor productivity gap, labor reallocation, labor reallocation variable, labor reallocation-driven growth, Public expenditure review, reallocation decision, reallocation effect, reallocation variable, South Asia, Sub-Saharan Africa, WP.

The Impact of Intersectoral Labor Reallocationon Economic Growth — IMF Working Paper by Hélène Poirson, June 1, 2000.

Content in this bundle

• The Impact of Intersectoral Labor Reallocation on Economic Growth - WP/00/104
  • The Impact of Intersectoral Labor Reallocation on Economic Growth - WP/00/104 (Markdown version)
  • The Impact of Intersectoral Labor Reallocation on Economic Growth - WP/00/104 (PDF)