Factor reallocation and growth: what if there are labor saving innovations?
We claim that the standard methodology to study the effects of the reallocation of factors on growth is not adequate in the presence of biased innovations. Labor-saving innovations increase output per worker and may decrease the marginal productivity of labor. Therefore, a reallocation of labor from...
- Autores:
-
Zuleta, Hernando
Gamboa, Daniel
- Tipo de recurso:
- Work document
- Fecha de publicación:
- 2019
- Institución:
- Universidad de los Andes
- Repositorio:
- Séneca: repositorio Uniandes
- Idioma:
- spa
- OAI Identifier:
- oai:repositorio.uniandes.edu.co:1992/41076
- Acceso en línea:
- http://hdl.handle.net/1992/41076
- Palabra clave:
- Factor reallocation
Capital using and labor saving innovations
Factor income shares
Structural change
D33, O11, O31, O33, J30
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
| Summary: | We claim that the standard methodology to study the effects of the reallocation of factors on growth is not adequate in the presence of biased innovations. Labor-saving innovations increase output per worker and may decrease the marginal productivity of labor. Therefore, a reallocation of labor from a sector with higher output per worker to a sector with lower output per worker may be productivity enhancing. |
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