Abstract (may include machine translation)
We study the origins of labor productivity growth and its differences across sectors. In our model, sectors employ workers of different occupations and various forms of capital, none of which are perfect substitutes, and technology evolves at the sector-factor cell level. Using the model we infer technologies from US data over 1960-2017. We find that sectoral differences in labor productivity growth are largely due to sectoral differences in the growth rate of routine labor augmenting technologies. Neither capital accumulation nor the occupational employment structure within sectors explains much of the sectoral differences in labor productivity growth.
Original language | English |
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Pages (from-to) | 304-343 |
Number of pages | 40 |
Journal | Review of Economic Dynamics |
Volume | 39 |
DOIs | |
State | Published - Jan 2021 |
Externally published | Yes |
Keywords
- Biased technological change
- Labor productivity
- Structural transformation