The Role of Sectoral Growth Patterns in Labor Market Development

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-intensiv...

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Main Authors: Arias-Vazquez, Francisco Javier, Lee, Jean N., Newhouse, David
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
GDP
Online Access:http://documents.worldbank.org/curated/en/2012/10/16876453/role-sectoral-growth-patterns-labor-market-development
http://hdl.handle.net/10986/12093
id okr-10986-12093
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGGREGATE EMPLOYMENT
AGGREGATE GROWTH
AGRICULTURAL GROWTH
AGRICULTURAL PRODUCTIVITY
AGRICULTURE
ANNUAL GROWTH
AVERAGE UNEMPLOYMENT
AVERAGE WAGE
COMPETITIVE PRESSURES
COUNTRY CASE
COUNTRY DATA
COUNTRY LEVEL
COUNTRY REGRESSIONS
CROSS-COUNTRY ANALYSIS
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT INDICATORS
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DISTRIBUTIONAL IMPLICATIONS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC LITERATURE
ECONOMIC REFORMS
ECONOMIC RESEARCH
ECONOMIC SECTORS
ECONOMIC STRUCTURES
ECONOMIC STUDIES
ECONOMICS
ELASTICITY
EMPLOYEE
EMPLOYMENT
EMPLOYMENT EFFECTS
EMPLOYMENT GENERATION
EMPLOYMENT GROWTH
EMPLOYMENT INCREASE
EMPLOYMENT OUTCOME
EMPLOYMENT OUTCOMES
EMPLOYMENT PATTERNS
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT STATUS
EMPLOYMENT TRENDS
EXCHANGE RATES
EXPORT GROWTH
EXPORTS
FINANCIAL CRISIS
FINANCIAL SECTOR
FINANCIAL SECTORS
FINANCIAL SERVICES
FIXED EFFECTS
GDP
GDP PER CAPITA
GLOBAL ECONOMY
GROSS DOMESTIC PRODUCT
GROWTH PRO-POOR
GROWTH RATE
GROWTH RATES
HIGH INCOME COUNTRIES
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HUMAN DEVELOPMENT
INCOME
INCOME DISTRIBUTION
INCOME INEQUALITY
INDUSTRIAL DEVELOPMENT
INDUSTRIALIZATION
JOB CREATION
JOBS
LABOR ALLOCATION
LABOR FORCE
LABOR MARKET
LABOR MARKET DEVELOPMENT
LABOR MARKET INDICATORS
LABOR MARKET OUTCOMES
LABOR MARKET RIGIDITIES
LABOR MARKETS
LABOR MOBILITY
LABOR PRODUCTIVITY
LABOR PRODUCTIVITY GROWTH
LABOR REGULATION
LABOR REGULATIONS
LABOUR
LABOUR FORCE
LAWS
LIVING STANDARDS
LOCAL LABOR MARKETS
LONG RUN
LONG-RUN EFFECTS
LONG-RUN GROWTH
LOW-INCOME COUNTRIES
MACROECONOMICS
MIDDLE INCOME COUNTRIES
MIDDLE INCOME COUNTRY
NATURAL RESOURCES
NON-FARM SECTOR
OCCUPATION
OCCUPATIONS
OPEN UNEMPLOYMENT
PANEL REGRESSIONS
POINT DECLINE
POINT ESTIMATE
POINT ESTIMATES
POLICY OBJECTIVE
POLICY RESEARCH
POSITIVE EFFECTS
POVERTY DYNAMICS
POVERTY REDUCTION
POVERTY REDUCTION STRATEGIES
PREVIOUS SECTION
PREVIOUS STUDIES
PRO-POOR
PRODUCTIVE EMPLOYMENT
PRODUCTIVITY
PRODUCTIVITY GROWTH
PRODUCTIVITY IMPROVEMENTS
PRODUCTIVITY INCREASES
PUBLIC SECTOR
REAL WAGE
REAL WAGE DECLINES
REDUCING POVERTY
RETAIL TRADE
RURAL AREAS
SAVINGS
SECTORAL COMPOSITION
SERVICE SECTOR
SIGNIFICANT EFFECT
SOCIAL PROTECTION
SOCIAL SERVICES
STANDARD DEVIATION
STRUCTURAL CHANGE
TRANSPORT
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT DECLINE
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
URBAN AREAS
URBAN WORKERS
VALUE ADDED
WAGE DATA
WAGE EFFECTS
WAGE EMPLOYMENT
WAGE GROWTH
WAGE INCREASES
WAGES
WEALTH
WORK FORCE
WORKER
spellingShingle AGGREGATE EMPLOYMENT
AGGREGATE GROWTH
AGRICULTURAL GROWTH
AGRICULTURAL PRODUCTIVITY
AGRICULTURE
ANNUAL GROWTH
AVERAGE UNEMPLOYMENT
AVERAGE WAGE
COMPETITIVE PRESSURES
COUNTRY CASE
COUNTRY DATA
COUNTRY LEVEL
COUNTRY REGRESSIONS
CROSS-COUNTRY ANALYSIS
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT INDICATORS
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DISTRIBUTIONAL IMPLICATIONS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC LITERATURE
ECONOMIC REFORMS
ECONOMIC RESEARCH
ECONOMIC SECTORS
ECONOMIC STRUCTURES
ECONOMIC STUDIES
ECONOMICS
ELASTICITY
EMPLOYEE
EMPLOYMENT
EMPLOYMENT EFFECTS
EMPLOYMENT GENERATION
EMPLOYMENT GROWTH
EMPLOYMENT INCREASE
EMPLOYMENT OUTCOME
EMPLOYMENT OUTCOMES
EMPLOYMENT PATTERNS
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT STATUS
EMPLOYMENT TRENDS
EXCHANGE RATES
EXPORT GROWTH
EXPORTS
FINANCIAL CRISIS
FINANCIAL SECTOR
FINANCIAL SECTORS
FINANCIAL SERVICES
FIXED EFFECTS
GDP
GDP PER CAPITA
GLOBAL ECONOMY
GROSS DOMESTIC PRODUCT
GROWTH PRO-POOR
GROWTH RATE
GROWTH RATES
HIGH INCOME COUNTRIES
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HUMAN DEVELOPMENT
INCOME
INCOME DISTRIBUTION
INCOME INEQUALITY
INDUSTRIAL DEVELOPMENT
INDUSTRIALIZATION
JOB CREATION
JOBS
LABOR ALLOCATION
LABOR FORCE
LABOR MARKET
LABOR MARKET DEVELOPMENT
LABOR MARKET INDICATORS
LABOR MARKET OUTCOMES
LABOR MARKET RIGIDITIES
LABOR MARKETS
LABOR MOBILITY
LABOR PRODUCTIVITY
LABOR PRODUCTIVITY GROWTH
LABOR REGULATION
LABOR REGULATIONS
LABOUR
LABOUR FORCE
LAWS
LIVING STANDARDS
LOCAL LABOR MARKETS
LONG RUN
LONG-RUN EFFECTS
LONG-RUN GROWTH
LOW-INCOME COUNTRIES
MACROECONOMICS
MIDDLE INCOME COUNTRIES
MIDDLE INCOME COUNTRY
NATURAL RESOURCES
NON-FARM SECTOR
OCCUPATION
OCCUPATIONS
OPEN UNEMPLOYMENT
PANEL REGRESSIONS
POINT DECLINE
POINT ESTIMATE
POINT ESTIMATES
POLICY OBJECTIVE
POLICY RESEARCH
POSITIVE EFFECTS
POVERTY DYNAMICS
POVERTY REDUCTION
POVERTY REDUCTION STRATEGIES
PREVIOUS SECTION
PREVIOUS STUDIES
PRO-POOR
PRODUCTIVE EMPLOYMENT
PRODUCTIVITY
PRODUCTIVITY GROWTH
PRODUCTIVITY IMPROVEMENTS
PRODUCTIVITY INCREASES
PUBLIC SECTOR
REAL WAGE
REAL WAGE DECLINES
REDUCING POVERTY
RETAIL TRADE
RURAL AREAS
SAVINGS
SECTORAL COMPOSITION
SERVICE SECTOR
SIGNIFICANT EFFECT
SOCIAL PROTECTION
SOCIAL SERVICES
STANDARD DEVIATION
STRUCTURAL CHANGE
TRANSPORT
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT DECLINE
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
URBAN AREAS
URBAN WORKERS
VALUE ADDED
WAGE DATA
WAGE EFFECTS
WAGE EMPLOYMENT
WAGE GROWTH
WAGE INCREASES
WAGES
WEALTH
WORK FORCE
WORKER
Arias-Vazquez, Francisco Javier
Lee, Jean N.
Newhouse, David
The Role of Sectoral Growth Patterns in Labor Market Development
relation Policy Research Working Paper; No. 6250
description 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.
format Publications & Research :: Policy Research Working Paper
author Arias-Vazquez, Francisco Javier
Lee, Jean N.
Newhouse, David
author_facet Arias-Vazquez, Francisco Javier
Lee, Jean N.
Newhouse, David
author_sort Arias-Vazquez, Francisco Javier
title The Role of Sectoral Growth Patterns in Labor Market Development
title_short The Role of Sectoral Growth Patterns in Labor Market Development
title_full The Role of Sectoral Growth Patterns in Labor Market Development
title_fullStr The Role of Sectoral Growth Patterns in Labor Market Development
title_full_unstemmed The Role of Sectoral Growth Patterns in Labor Market Development
title_sort role of sectoral growth patterns in labor market development
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2012/10/16876453/role-sectoral-growth-patterns-labor-market-development
http://hdl.handle.net/10986/12093
_version_ 1764418999304585216
spelling okr-10986-120932021-04-23T14:02:59Z The Role of Sectoral Growth Patterns in Labor Market Development Arias-Vazquez, Francisco Javier Lee, Jean N. Newhouse, David AGGREGATE EMPLOYMENT AGGREGATE GROWTH AGRICULTURAL GROWTH AGRICULTURAL PRODUCTIVITY AGRICULTURE ANNUAL GROWTH AVERAGE UNEMPLOYMENT AVERAGE WAGE COMPETITIVE PRESSURES COUNTRY CASE COUNTRY DATA COUNTRY LEVEL COUNTRY REGRESSIONS CROSS-COUNTRY ANALYSIS DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT REPORT DISTRIBUTIONAL IMPLICATIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMIC STRUCTURES ECONOMIC STUDIES ECONOMICS ELASTICITY EMPLOYEE EMPLOYMENT EMPLOYMENT EFFECTS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT INCREASE EMPLOYMENT OUTCOME EMPLOYMENT OUTCOMES EMPLOYMENT PATTERNS EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT STATUS EMPLOYMENT TRENDS EXCHANGE RATES EXPORT GROWTH EXPORTS FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL SECTORS FINANCIAL SERVICES FIXED EFFECTS GDP GDP PER CAPITA GLOBAL ECONOMY GROSS DOMESTIC PRODUCT GROWTH PRO-POOR GROWTH RATE GROWTH RATES HIGH INCOME COUNTRIES HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME INEQUALITY INDUSTRIAL DEVELOPMENT INDUSTRIALIZATION JOB CREATION JOBS LABOR ALLOCATION LABOR FORCE LABOR MARKET LABOR MARKET DEVELOPMENT LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR MARKET RIGIDITIES LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR FORCE LAWS LIVING STANDARDS LOCAL LABOR MARKETS LONG RUN LONG-RUN EFFECTS LONG-RUN GROWTH LOW-INCOME COUNTRIES MACROECONOMICS MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY NATURAL RESOURCES NON-FARM SECTOR OCCUPATION OCCUPATIONS OPEN UNEMPLOYMENT PANEL REGRESSIONS POINT DECLINE POINT ESTIMATE POINT ESTIMATES POLICY OBJECTIVE POLICY RESEARCH POSITIVE EFFECTS POVERTY DYNAMICS POVERTY REDUCTION POVERTY REDUCTION STRATEGIES PREVIOUS SECTION PREVIOUS STUDIES PRO-POOR PRODUCTIVE EMPLOYMENT PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY IMPROVEMENTS PRODUCTIVITY INCREASES PUBLIC SECTOR REAL WAGE REAL WAGE DECLINES REDUCING POVERTY RETAIL TRADE RURAL AREAS SAVINGS SECTORAL COMPOSITION SERVICE SECTOR SIGNIFICANT EFFECT SOCIAL PROTECTION SOCIAL SERVICES STANDARD DEVIATION STRUCTURAL CHANGE TRANSPORT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT DECLINE UNEMPLOYMENT RATE UNEMPLOYMENT RATES URBAN AREAS URBAN WORKERS VALUE ADDED WAGE DATA WAGE EFFECTS WAGE EMPLOYMENT WAGE GROWTH WAGE INCREASES WAGES WEALTH WORK FORCE WORKER 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. 2013-01-04T19:03:36Z 2013-01-04T19:03:36Z 2012-10 http://documents.worldbank.org/curated/en/2012/10/16876453/role-sectoral-growth-patterns-labor-market-development http://hdl.handle.net/10986/12093 English en_US Policy Research Working Paper; No. 6250 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research