Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation

The relative stability of aggregate labor's share constitutes one of the great macroeconomic ratios. However, relative stability at the aggregate level masks the unbalanced nature of industry labor's shares – the Kuznets stylized facts underlie those of Kaldor. We present a two-sector –...

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Autores Principales: Zuleta, Hernando, Young, Andrew T.
Formato: Documento de trabajo (Working Paper)
Lenguaje:Español (Spanish)
Publicado: Universidad del Rosario 2007
Materias:
Acceso en línea:http://repository.urosario.edu.co/handle/10336/10789
id ir-10336-10789
recordtype dspace
spelling ir-10336-107892019-09-19T12:37:01Z Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation Zuleta, Hernando Young, Andrew T. Economía laboral Economía del trabajo Mercado laboral::Modelos Econométricos Crecimientos económico Labor's Share Factor Shares Development Biased Technical Change Capital Intensity The relative stability of aggregate labor's share constitutes one of the great macroeconomic ratios. However, relative stability at the aggregate level masks the unbalanced nature of industry labor's shares – the Kuznets stylized facts underlie those of Kaldor. We present a two-sector – one labor-only and the other using both capital and labor – model of unbalanced economic development with induced innovation that can rationalize these phenomena as well as several other empirical regularities of actual economies. Specifically, the model features (i) one sector ("goods" production) becoming increasingly capital-intensive over time; (ii) an increasing relative price and share in total output of the labor-only sector ("services"); and (iii) diverging sectoral labor's shares despite (iii) an aggregate labor's share that converges from above to a value between 0 and unity. Furthermore, the model (iv) supports either a neoclassical steadystate or long-run endogenous growth, giving it the potential to account for a wide range of real world development experiences. 2007-01-17 2015-09-14T15:42:44Z info:eu-repo/semantics/workingPaper info:eu-repo/semantics/acceptedVersion Zuleta, H., & Young, A. T. (2007). Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation. Bogotá: Universidad del Rosario, Facultad de Economía. http://repository.urosario.edu.co/handle/10336/10789 Universidad del Rosario, Facultad de Economía spa info:eu-repo/semantics/openAccess application/pdf Universidad del Rosario Facultad de Economía instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR instname:Universidad del Rosario Acemoglu, Daron and Guerrieri, Veronica. "Capital Deepening and Non-balanced Growth." NBER Working Paper, 2006. Ambler, Steve and Cardia, Emanuela. "The Cyclical Behaviour of Wages and Profits under Imperfect Competition." Canadian Journal of Economics, 1998, 31 (1), pp. 148-164. Baumol, William J. "Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis." American Economic Review, June 1967, 57 (3), pp. 415-426. Caselli, Francesco and Coleman, John. "The U.S. Structural Transformation and Regional Convergence: A Reinterpretation." Journal of Political Economy, 2001, 109, pp. 584-617. Echevarria, Christina. "Changes in Sectoral Composition Associated with Economic Growth." International Economic Review, 1997, 38, pp. 431-452. Jorgenson, Dale W. & Gollop, Frank M. and Fraumeini, Barbara. Productivity and US Economic Growth. Cambridge: Harvard University Press, 1987. Kaldor, Nicholas. "Capital Accumulation and Economic Growth." in The Theory of Capital, Lutz and Hagues (Eds.), New York: St. Martin's Press, 1961. Ngai, L. Rachel and Pissarides, Christopher A. "Structural Change in a Multi-Sector Model of Growth." American Economic Review, 2006, forthcoming. Seater, John J. "Share-Altering Technical Progress." in Focus on Economic Growth and Productivity. Hauppauge: Nova Science Publishers, 2005. Young, Andrew T. "Labor's Share Fluctuations, Biased Technical Change, and the Business Cycle." Review of Economic Dynamics, 2004, 7, pp. 916-31. Zeira, Joseph. "Workers, Machines and Economic Growth." Quarterly Journal of Economics, 1998, 113 (4), pp. 1091-1117 Zeira, Joseph. “Machines as Engines of Growth” Working Paper, January 2006. Zuleta, Hernando. "Factor Saving Innovations and Factors Income Share." Working Paper, October 2005.
institution EdocUR - Universidad del Rosario
collection DSpace
language Español (Spanish)
topic Economía laboral
Economía del trabajo
Mercado laboral::Modelos Econométricos
Crecimientos económico
Labor's Share
Factor Shares
Development
Biased Technical Change
Capital Intensity
spellingShingle Economía laboral
Economía del trabajo
Mercado laboral::Modelos Econométricos
Crecimientos económico
Labor's Share
Factor Shares
Development
Biased Technical Change
Capital Intensity
Zuleta, Hernando
Young, Andrew T.
Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation
description The relative stability of aggregate labor's share constitutes one of the great macroeconomic ratios. However, relative stability at the aggregate level masks the unbalanced nature of industry labor's shares – the Kuznets stylized facts underlie those of Kaldor. We present a two-sector – one labor-only and the other using both capital and labor – model of unbalanced economic development with induced innovation that can rationalize these phenomena as well as several other empirical regularities of actual economies. Specifically, the model features (i) one sector ("goods" production) becoming increasingly capital-intensive over time; (ii) an increasing relative price and share in total output of the labor-only sector ("services"); and (iii) diverging sectoral labor's shares despite (iii) an aggregate labor's share that converges from above to a value between 0 and unity. Furthermore, the model (iv) supports either a neoclassical steadystate or long-run endogenous growth, giving it the potential to account for a wide range of real world development experiences.
format Documento de trabajo (Working Paper)
author Zuleta, Hernando
Young, Andrew T.
author_facet Zuleta, Hernando
Young, Andrew T.
author_sort Zuleta, Hernando
title Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation
title_short Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation
title_full Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation
title_fullStr Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation
title_full_unstemmed Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation
title_sort labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation
publisher Universidad del Rosario
publishDate 2007
url http://repository.urosario.edu.co/handle/10336/10789
_version_ 1645140987897446400
score 11,489418