Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
986824 | Review of Economic Dynamics | 2015 | 20 Pages |
Abstract
In poor countries, labor productivity in agriculture is considerably lower than in the rest of the economy. We assess whether this well-known fact implies that labor is mis-allocated between the two sectors. We make several observations that suggest otherwise. First, the same fact holds for US states where severe mis-allocation is implausible. Second, the gaps between the marginal value products of agriculture and non-agriculture are considerably smaller when measured through wages than through labor productivities. Third, labor productivity in agriculture is severely mis-measured in the US.
Keywords
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Economics and Econometrics
Authors
Berthold Herrendorf, Todd Schoellman,