Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33564 
Year of Publication: 
2005
Series/Report no.: 
IZA Discussion Papers No. 1800
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We study a multi-sector model of growth with differences in TFP growth rates across sectors and derive sufficient conditions for the coexistence of structural change, characterized by sectoral labor reallocation, and balanced aggregate growth. The conditions are weak restrictions on the utility and production functions commonly applied by macroeconomists. Per capita output grows at the rate of labor-augmenting technological progress in the capital-producing sector and employment moves to low-growth sectors. In the limit all employment converges to two sectors, the slowest-growing consumption-goods sector and the capital-goods sector.
Subjects: 
multi-sector growth
structural change
balanced growth
sectoral employment
unbalanced growth
JEL: 
O41
O14
Document Type: 
Working Paper

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