Aggregate Growth and the Efficiency of Labour Reallocation

Simon Burgess () and Daniel Mawson

No 3848, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We consider the potential importance of labour market efficiency for aggregate growth. The idea is that efficient labour markets move workers more quickly from low to high productivity sites, thereby raising aggregate productivity growth. We define a measure of labour market efficiency as a structural parameter from a matching function. Using labour market data on 15 OECD countries, we estimate this and show that it has a significant effect on growth. The results are robust to a number of different estimation techniques. The quantitative impact of market efficiency is not trivial.

Keywords: Growth; Labour efficiency; Labour market institutions (search for similar items in EconPapers)
JEL-codes: J63 O40 (search for similar items in EconPapers)
Date: 2003-03
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Citations: View citations in EconPapers (7)

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Working Paper: Aggregate Growth and the Efficiency of Labour Reallocation (2003)
Working Paper: Aggregate growth and the efficiency of labour reallocation (2003)
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