Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123128
Authors: 
Herrendorf, Berthold
Schoellman, Todd
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5484
Abstract: 
In poor countries, labor productivity in agriculture is considerably lower than in the rest of the economy. We assess whether this well known fact implies that labor is mis-allocated between the two sectors. We make several observations that suggest otherwise. First, the same fact holds for US states where severe mis-allocation is implausible. Second, the gaps between the marginal value products of agriculture and non-agriculture are considerably smaller when measured through wages than through labor productivities. Third, labor productivity in agriculture is severely mis-measured in the US.
Subjects: 
mis-allocation of labor
productivity gaps
wage gaps
JEL: 
O10
Document Type: 
Working Paper

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