Unconditional convergence of labor productivity in the service sector

Bisrat Kinfemichael and Akm Morshed

Journal of Macroeconomics, 2019, vol. 59, issue C, 217-229

Abstract: Using disaggregated service sector data for 95 countries, we found unconditional convergence in real labor productivity for the service sector. The aggregate service sector yields a large unconditional convergence coefficient of −0.035; we also found the presence of unconditional convergence for individual sub-sectors. Since the service sector now faces both domestic and international competition, the presence of unconditional convergence in labor productivity in this sector is not surprising. Unlike Rodrik (2013), we found evidence of unconditional convergence for aggregate labor productivity in the most recent data available, and the convergence of the service sector productivity appears to be a crucial component of this reversal.

Keywords: Unconditional convergence; Labor productivity; Service sector (search for similar items in EconPapers)
JEL-codes: O14 O40 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:59:y:2019:i:c:p:217-229

DOI: 10.1016/j.jmacro.2018.12.005

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