Structural Change and Economic Growth

In another paper, we study the impact of structural change on economic growth. In particular, we analyze the shift out of the agricultural sector into other sectors of dual economies. The basic idea of the model is that changes in the employment structure will raise aggregate productivity if the marginal product of labor differs between sectors. The empirical results imply sizable marginal product differentials across sectors and indicate that sectoral reallocation of labor contributes significantly to the international variation in productivity growth.

Research paper:

Dualism and Cross-Country Growth Regressions (with J. Temple). Journal of Economic Growth 11 (3): 187-228, 2006