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
aggregate_demand_sga.m text/plain 324 bytes 10/11/2019 02:30:PM
aggregate_demand_sgn.m text/plain 295 bytes 10/11/2019 02:30:PM
aggregate_supply_a.m text/plain 321 bytes 10/11/2019 02:30:PM
aggregate_supply_n.m text/plain 259 bytes 10/11/2019 02:30:PM
calibration9010_no_selection.m text/plain 2.4 KB 10/11/2019 02:30:PM
calibration9010_no_selection_no_land.m text/plain 2.4 KB 10/11/2019 02:30:PM
capital_calibration9010.m text/plain 2 KB 10/11/2019 02:30:PM
compute_capital_land.m text/plain 2.6 KB 10/11/2019 02:30:PM
compute_income.m text/plain 1 KB 10/11/2019 02:30:PM
compute_land_size.m text/plain 288 bytes 10/11/2019 02:30:PM

Project Description

Summary:  View help for Summary 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:  View help for JEL Classification
      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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Published Versions

V1 [2019-10-11]

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DDI 2.5

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