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Dualism and cross-country growth regressions

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  • Jonathan Temple
  • Ludger Wößmann

Abstract

This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Changes in the structure of employment will raise aggregate productivity when the marginal product of labor varies across sectors. The models in the paper incorporate this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and indicate that the reallocation of labor makes a significant contribution to the international variation in productivity growth. Copyright Springer Science+Business Media, LLC 2006

Suggested Citation

  • Jonathan Temple & Ludger Wößmann, 2006. "Dualism and cross-country growth regressions," Journal of Economic Growth, Springer, vol. 11(3), pages 187-228, September.
    • Handle: RePEc:kap:jecgro:v:11:y:2006:i:3:p:187-228
    DOI: 10.1007/s10887-006-9003-x
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    More about this item

    Keywords

    Structural change; Dualism; Wage differentials; TFP growth; O11; O40;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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