Abstract
The development accounting literature assumes that sector labor income shares and output per person across countries are not correlated. In this paper, I show that the data reject this assumption for a large set of countries. The labor shares in the manufacturing and the market-services sectors increase significantly more with output per person than in other sectors, leading to a shift of labor income across sectors with economic development. The empirical evidence suggests that capital deepening is the primary driver of these patterns. Researchers can directly use the new dataset of labor shares to calibrate multisector models.
| Original language | English |
|---|---|
| Number of pages | 14 |
| Publication status | Published - May 2024 |
Publication series
| Name | Working Papers of the Department of Economics at JKU Linz |
|---|
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 2 Zero Hunger -
SDG 8 Decent Work and Economic Growth -
SDG 9 Industry, Innovation, and Infrastructure -
SDG 17 Partnerships for the Goals
Fields of science
- 303010 Health economics
- 502 Economics
- 502002 Labour economics
- 502009 Corporate finance
- 502021 Microeconomics
- 502042 Environmental economics
- 502047 Economic theory
- 504014 Gender studies
- 507016 Regional economy
- 405002 Agricultural economics
- 502001 Labour market policy
- 502003 Foreign trade
- 502010 Public finance
- 502012 Industrial management
- 502013 Industrial economics
- 502018 Macroeconomics
- 502020 Market research
- 502025 Econometrics
- 502027 Political economy
- 502039 Structural policy
- 502046 Economic policy
- 506004 European integration
JKU Focus areas
- Sustainable Development: Responsible Technologies and Management
Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver