Productivity gains from reallocation of talent in Brazil and India

Kanat Abdulla

Journal of Macroeconomics, 2019, vol. 62, issue C

Abstract: This paper investigates labor market outcomes and their effects on aggregate productivity in Brazil and India. The empirical evidence points to the inefficient allocation of talent across occupations in both countries. Two main factors are identified as causes of the inefficiency: frictions in human capital accumulation and frictions in the labor markets. The resulting distribution of talent negatively affects aggregate productivity, which is examined by using an augmented Roy model. The model predicts that the elimination of barriers to human capital accumulation and in the labor markets in Brazil and India increases the output on average by 22–52% and 38–53%, respectively.

Keywords: Allocation of talent; Occupational distribution; Aggregate productivity (search for similar items in EconPapers)
JEL-codes: J24 J70 O11 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 (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164070419301442
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:62:y:2019:i:c:s0164070419301442

DOI: 10.1016/j.jmacro.2019.103160

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().