Sectoral Decomposition of Convergence in Labor Productivity : A Re-examination from a New Dataset
This paper investigates how the sector-specific source or the changing sectoral composition of labor productivity has contributed to aggregate beta convergence, using a newly constructed eight-sector database. The main findings are twofold. First,...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/490901630527256426/Sectoral-Decomposition-of-Convergence-in-Labor-Productivity-A-Re-examination-from-a-New-Dataset http://hdl.handle.net/10986/36232 |
| Summary: | This paper investigates how the
sector-specific source or the changing sectoral composition
of labor productivity has contributed to aggregate beta
convergence, using a newly constructed eight-sector
database. The main findings are twofold. First, both within
and sectoral reallocation have become important drivers of
aggregate convergence in labor productivity. Second,
agricultural productivity growth has been a significant
contributor to aggregate convergence, whereas catch-up in
other sectors has only contributed a small amount to
convergence. The strong growth of the agriculture sector has
been the most important driver of aggregate productivity
convergence even though agricultural productivity itself in
low-income countries is weakly converging to that in
advanced economies. |
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