Abstract
This paper provides a kaldorian interpretation for empirical regularities of productivity growth at the sectoral level of the economy. The statistical evidence is based on a dataset drawn from internationally compatible time series for employment and value added in 30 developing countries. Based on novel non-linear statistical techniques the findings show: (i) a regular pattern of positive sectoral employment elasticities with respect to output growth; (ii) robust differences across sectors in the magnitude of the employment elasticities; and (iii) employment elasticities for all sectors that are significantly less than unity, suggesting strong evidence for increasing returns at the sector level of the economy.
Original language | English |
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Pages (from-to) | 831-850 |
Journal | Cambridge Journal of Economics |
Volume | 27 |
DOIs | |
Publication status | Published - 1 Jan 2003 |