Dualism and cross-country growth regressions
- First Online:
- 715 Downloads
This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Changes in the structure of employment will raise aggregate productivity when the marginal product of labor varies across sectors. The models in the paper incorporate this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and indicate that the reallocation of labor makes a significant contribution to the international variation in productivity growth.
KeywordsStructural change Dualism Wage differentials TFP growth
JEL ClassificationsO11 O40
Unable to display preview. Download preview PDF.