Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18928 
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper No. 1290
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper examines whether growth regressions should incorporate dualism and structural change. If there is a differential across sectors in the marginal product of labour, changes in the structure of employment can raise aggregate total factor productivity. The paper develops empirical growth models that allow for this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and reveal that the reallocation of labour can explain a significant fraction of the international variation in TFP growth.
Subjects: 
growth
convergence
structural change
JEL: 
O1
O4
Document Type: 
Working Paper
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