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Project Citation: 

Schoellman, Todd, and Herrendorf, Berthold. Wages, Human Capital, and Barriers to Structural Transformation. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-09-29. https://doi.org/10.3886/E151141V1

Project Description

Summary:  View help for Summary
We document for 13 countries ranging from rich (Canada, U.S.) to poor (India, Indonesia) that average wages are considerably lower in agriculture than in the other sectors. Moreover, agriculture has less educated workers and lower Mincer returns.
We view these findings through the lens of a multi-sector model in which workers differ
in observed and unobserved characteristics and sectors differ in their human–capital
intensities. We derive expressions for the implied barriers to the reallocation of labor
out of agriculture. We find that in our sample these barriers are considerably smaller
than what the macro–development literature has argued.

Scope of Project

Subject Terms:  View help for Subject Terms PSID
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 1979 – 2013


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