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Engines of Sectoral Labor Productivity Growth

Bárány, Zsófia L. and Siegel, Christian (2019) Engines of Sectoral Labor Productivity Growth. Discussion paper. University of Kent (KAR id:77653)

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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.

Item Type: Reports and Papers (Discussion paper)
Additional information: School of Economics Discussion Paper 19/01
Uncontrolled keywords: biased technological change, structural transformation, labor productivity
Subjects: H Social Sciences > HB Economic Theory
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Funders: Organisations -1 not found.
Depositing User: Christian Siegel
Date Deposited: 21 Oct 2019 15:09 UTC
Last Modified: 14 Nov 2022 23:10 UTC
Resource URI: (The current URI for this page, for reference purposes)

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