Sectoral Decomposition of Convergence in Labor Productivity: A Re-examination from a New Dataset

Alistair Dieppe and Hideaki Matsuoka

No 9767, Policy Research Working Paper Series from The World Bank

Abstract: This paper investigates how the sector-specific source or the changing sectoral composition of labor productivity has contributed to aggregate beta convergence, using a newly constructed eight-sector database. The main findings are twofold. First, both within and sectoral reallocation have become important drivers of aggregate convergence in labor productivity. Second, agricultural productivity growth has been a significant contributor to aggregate convergence, whereas catch-up in other sectors has only contributed a small amount to convergence. The strong growth of the agriculture sector has been the most important driver of aggregate productivity convergence even though agricultural productivity itself in low-income countries is weakly converging to that in advanced economies.

Keywords: Food Security; Labor Markets; Transport Services; Common Carriers Industry; Food & Beverage Industry; Plastics & Rubber Industry; Business Cycles and Stabilization Policies; Construction Industry; General Manufacturing; Pulp & Paper Industry; Textiles; Apparel & Leather Industry; International Trade and Trade Rules (search for similar items in EconPapers)
Date: 2021-09-01
New Economics Papers: this item is included in nep-eff
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Related works:
Working Paper: Sectoral decomposition of convergence in labor productivity: A re-examination from a new dataset (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9767

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