Structural Transformation of Occupation Employment

Georg Duernecker and Berthold Herrendorf

No 9321, CESifo Working Paper Series from CESifo

Abstract: We use census data to show that structural transformation reflects a fundamental reallocation of labor from goods to services, instead of a relabelling that occurs when goods-producing firms outsource their in-house service production. The novelty of our approach is that it categorizes labor by occupations, which are invariant to outsourcing. We find that the reallocation of labor from goods-producing to service-producing occupations is a robust feature in censuses from around the world and different time periods. To understand the underlying forces, we propose a tractable model in which uneven occupation-specific technological change generates structural transformation of occupation employment.

Keywords: biased technological change; occupations; outsourcing; structural transformation (search for similar items in EconPapers)
JEL-codes: O11 O14 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ore and nep-tid
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Related works:
Journal Article: Structural Transformation of Occupation Employment (2022)
Working Paper: Structural Transformation of Occupation Employment (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9321

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