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Growth and Labor Mobility

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  • Weiss, Yoram

Abstract

Recent literature on economic growth emphasizes the role of human capital as "engine of growth". Most of this literature simply assumes that accumulated productive knowledge spills over and benefits all agents in the economy, without much attention to the process by which different agents learn from each other. This paper analyzes the role of labor mobility in the transmission of existing productive knowledge and in the creation of new productive knowledge. The working of the labor market and the processes of training and schooling are described in sufficient detail to allow analysis of specific labor market policies. Particular attention is given to the possible consequences of restrictions on labor mobility, such as minimum wage legislation, which characterize developing economies. It is shown that such restrictions can impede growth.

Suggested Citation

  • Weiss, Yoram, 1995. "Growth and Labor Mobility," Foerder Institute for Economic Research Working Papers 275600, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275600
    DOI: 10.22004/ag.econ.275600
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    References listed on IDEAS

    as
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    3. Chari, V V & Hopenhayn, Hugo, 1991. "Vintage Human Capital, Growth, and the Diffusion of New Technology," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1142-1165, December.
    4. Ejaz Ghani, 1992. "How Significant are Externalities for Development?," Palgrave Macmillan Books, in: North-South and South-South, chapter 6, pages 118-161, Palgrave Macmillan.
    5. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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