Productivity differences

Author(s): Acemoglu, Daron; Zilibotti, Fabrizio

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Abstract Many technologies sed by the LDCs are developed in the OECD economies and are designed to make optimal se of the skills of these richer countries' workforces. Differences in the supply of skills create a mismatch between the requirements of these technologies and the skills of LDC workers, and lead to low productivity in the LDC. Even when all countries have equal access to new technologies, this technology-skill mismatch can lead to sizable differences in total factor productivity and output per worker. We provide evidence in favor of the cross-industry productivity patterns predicted by our model, and also show that technology-skill mismatch could account for a large fraction of the observed output per worker differences in the data.
Publication Title The Quarterly Journal of Economics
Publisher MIT Press
Publication Date 2001
URIs http://www.econis.eu/PPNSET?PPN=329761544
http://www.jstor.org/stable/2696473
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcAuth=SerialsSolutions&SrcApp=Summon&KeyUT=000168517400006&DestLinkType=FullRecord&DestApp=WOS
http://search.proquest.com/docview/210973754
Keywords APPROPRIATE TECHNOLOGY
Analysis
DEMAND
Developing countries
ECONOMIC-GROWTH
ECONOMICS
Emerging markets
Human Capital, Skills, Occupational Choice, Labor Productivity (J24)
INTERNATIONAL COMPARISONS
Industrial productivity
Industrialization, Manufacturing and Service Industries, Choice of Technology (O14)
International Linkages to Development, Role of International Organizations (O19)
LDCs
Production, Cost, Capital, Capital, Total Factor, and Multifactor Productivity, Capacity (D24)
Productivity
Selected Countries
Skilled labor
Skills
Studies
TECHNOLOGICAL-CHANGE
TRADE
Technical education
Technological Change: Choices and Consequences, Diffusion Processes (O33)
Technological change
Technologies
Technology
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