Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227793 
Year of Publication: 
2019
Series/Report no.: 
School of Economics Discussion Papers No. 1901
Publisher: 
University of Kent, School of Economics, Canterbury
Abstract: 
We study the origins of labor productivity growth and its differences across sectors. In our model, sectors employ workers of different occupations and various forms of capital, none of which are perfect substitutes, and technology evolves at the sector-factor cell level. Using the model we infer technologies from US data over 1960-2017. We find sector-specific routine labor augmenting technological change to be crucial. It is the most important driver of sectoral differences, and has a large and increasing contribution to aggregate labor productivity growth. Neither capital accumulation nor the occupational employment structure within sectors explains much of the sectoral differences.
Subjects: 
biased technological change
structural transformation
labor productivity
JEL: 
O41
O33
J24
Document Type: 
Working Paper

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