Replication data for: Selection, Agriculture, and Cross-Country Productivity Differences
Principal Investigator(s): View help for Principal Investigator(s) David Lagakos; Michael E. Waugh
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| Calibrate-Correlation-Table | 10/11/2019 06:30:PM | ||
| Calibrate-Distribution | 10/11/2019 06:30:PM | ||
| Correlation-Table-Results | 10/11/2019 06:30:PM | ||
| Data | 10/11/2019 06:30:PM | ||
| Section-4-Results | 10/11/2019 06:30:PM | ||
| Section-5-Results | 10/11/2019 06:30:PM | ||
| Section-6-Results | 10/11/2019 06:30:PM | ||
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application/pdf | 24.7 KB | 10/11/2019 02:30:PM |
Project Description
Summary:
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Cross-country labor productivity differences are larger in agriculture
than in non-agriculture. We propose a new explanation for these
patterns in which the self-selection of heterogeneous workers
determines sector productivity. We formalize our theory in a general-equilibrium Roy model in which preferences feature a subsistence
food requirement. In the model, subsistence requirements induce
workers that are relatively unproductive at agricultural work to
nonetheless select into the agriculture sector in poor countries. When
parameterized, the model predicts that productivity differences are
roughly twice as large in agriculture as non-agriculture even when
countries differ by an economy-wide efficiency term that affects both
sectors uniformly. (JEL J24, J31, J43, O11, O13, O40)
Scope of Project
JEL Classification:
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J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J31 Wage Level and Structure; Wage Differentials
J43 Agricultural Labor Markets
O11 Macroeconomic Analyses of Economic Development
O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
O40 Economic Growth and Aggregate Productivity: General
J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J31 Wage Level and Structure; Wage Differentials
J43 Agricultural Labor Markets
O11 Macroeconomic Analyses of Economic Development
O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
O40 Economic Growth and Aggregate Productivity: General
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