TY  - RPRT
        AU  - Arias-Vazquez, Francisco Javier
AU  - Lee, Jean Nahrae
AU  - Newhouse, David
        TI  - The Role of Sectoral Growth Patterns in Labor Market Development
        PY  - 2012/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6926
        UR  - https://www.iza.org/index.php/publications/dp6926
        AB  - This paper investigates the relationship between sectoral growth patterns and employment outcomes. A broad cross-country analysis reveals that in middle-income countries, employment responds more to growth in less productive and more labor-intensive sectors. Employment in middle-income countries is susceptible to a resource curse, and grows rapidly in response to manufacturing and export manufacturing growth. Within Brazil, Indonesia, and Mexico, the effects of different sectoral growth patterns are context dependent, but differences in sectoral growth effects on employment and wages are substantially reduced in states or provinces with higher measured labor mobility. Consistent with this, aggregate employment and wage effects of growth by sector are close to uniform when examined over longer time horizons, after labor has an opportunity to adjust across sectors. The results reinforce the importance of growth in more labor-intensive sectors, and suggest that job mobility may be an important mechanism to diffuse the benefits of capital-intensive growth.
        KW  - employment
KW  - production structure
KW  - economic growth
KW  - unemployment
KW  - productivity
        ER  -