Structural transformation and labor productivity in Brazil

This paper examines the labor reallocation across agriculture, manufacturing, and services, and their impacts on aggregate labor productivity in Brazil from 1950 to 2010. We use a multisector model that features nonhomothetic preferences with constant elasticity of substitution and wedge distortions. This framework allows us to decompose the drivers of labor reallocation into supply-side, demandside, and wedges. For the 1950-2010 period, demand-side effects were responsible for most of the reallocation of labor away from agriculture towards manufacturing and services. On the other hand, if we focus only on the 1980-2010 subperiod, supply-side drivers become the major determinant for labor reallocation.

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Main Authors: Costa,Daniela, Marcolino,Marcos
Format: Digital revista
Language:English
Published: Fundação Getúlio Vargas 2021
Online Access:http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402021000400464
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spelling oai:scielo:S0034-714020210004004642022-03-03Structural transformation and labor productivity in BrazilCosta,DanielaMarcolino,Marcos multisector model structural transformation labor productivity This paper examines the labor reallocation across agriculture, manufacturing, and services, and their impacts on aggregate labor productivity in Brazil from 1950 to 2010. We use a multisector model that features nonhomothetic preferences with constant elasticity of substitution and wedge distortions. This framework allows us to decompose the drivers of labor reallocation into supply-side, demandside, and wedges. For the 1950-2010 period, demand-side effects were responsible for most of the reallocation of labor away from agriculture towards manufacturing and services. On the other hand, if we focus only on the 1980-2010 subperiod, supply-side drivers become the major determinant for labor reallocation.info:eu-repo/semantics/openAccessFundação Getúlio VargasRevista Brasileira de Economia v.75 n.4 20212021-12-01info:eu-repo/semantics/articletext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402021000400464en10.5935/0034-7140.20210020
institution SCIELO
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country Brasil
countrycode BR
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databasecode rev-scielo-br
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region America del Sur
libraryname SciELO
language English
format Digital
author Costa,Daniela
Marcolino,Marcos
spellingShingle Costa,Daniela
Marcolino,Marcos
Structural transformation and labor productivity in Brazil
author_facet Costa,Daniela
Marcolino,Marcos
author_sort Costa,Daniela
title Structural transformation and labor productivity in Brazil
title_short Structural transformation and labor productivity in Brazil
title_full Structural transformation and labor productivity in Brazil
title_fullStr Structural transformation and labor productivity in Brazil
title_full_unstemmed Structural transformation and labor productivity in Brazil
title_sort structural transformation and labor productivity in brazil
description This paper examines the labor reallocation across agriculture, manufacturing, and services, and their impacts on aggregate labor productivity in Brazil from 1950 to 2010. We use a multisector model that features nonhomothetic preferences with constant elasticity of substitution and wedge distortions. This framework allows us to decompose the drivers of labor reallocation into supply-side, demandside, and wedges. For the 1950-2010 period, demand-side effects were responsible for most of the reallocation of labor away from agriculture towards manufacturing and services. On the other hand, if we focus only on the 1980-2010 subperiod, supply-side drivers become the major determinant for labor reallocation.
publisher Fundação Getúlio Vargas
publishDate 2021
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402021000400464
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