Structural Change in a Multi-Sector Model of Growth

  title={Structural Change in a Multi-Sector Model of Growth},
  author={L. Rachel Ngai and Christopher A. Pissarides},
Economic growth takes place at uneven rates across different sectors of the economy. This paper has two objectives related to this fact: (a) to derive the implications of different sectoral total factor productivity (TFP) growth rates for structural change, the name given to the shifts in industrial employment shares that take place over long periods of time; and (b) to show that even with ongoing structural change, the economy’s aggregate ratios can be constant. We refer to the latter as… CONTINUE READING
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