The Impact of Intersectoral Labor Reallocationon Economic Growth

June 1, 2000

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Format: Chicago

Helene Poirson. The Impact of Intersectoral Labor Reallocationon Economic Growth, (USA: International Monetary Fund, 2000) accessed November 12, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Subject: 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

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/104
Stock No:

WPIEA1042000
ISBN:

9781451852752
ISSN:

1018-5941

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