The Effect of Restructuring on Labor Reallocation and Productivity Growth: An Estimation for Korea
Choi, Hyelin; Jung, Sung Chun; Kim, Subin | September 2017
Abstract
Productivity is considered one of the most important factors for economic growth. Total productivity grows through technological progress or reallocation of resources. This paper analyses their contribution to economic growth for total economy and by sectors. The main finding is that economy-wide increases but this is mainly due to internal technological improvements. On the one hand, inter-sector reallocation of labor negatively contributes to economic growth as employment moves to service sectors with low productivity. Further, when looking at the sectoral-level productivity growth, both internal and external restructuring make positive contributions to aggregate economic growth. However, internal technological progress and reallocation of employment appear to similarly contribute to the sectoral-level economic growth in the manufacturing sector, whereas internal restructuring makes a larger contribution to economic growth in the service sector. This suggests that there is more room for reallocation of resources to contribute to the productivity growth in service sectors. Therefore, the productivity growth of the service sector would foster economy-wide productivity and it can be achieved by the mitigation of misallocation of resources in service sectors.
Citation
Choi, Hyelin; Jung, Sung Chun; Kim, Subin. 2017. The Effect of Restructuring on Labor Reallocation and Productivity Growth: An Estimation for Korea. © Korea Institute for International Economic Policy. http://hdl.handle.net/11540/7794.Print ISBN
978-89-322-4270-5
Keywords
Economic development
Standard of living
Trade development
Employment
Performance appraisal
Needs assessment
Input output analysis|ADB
Employment
Performance appraisal
Project failure
Project impact
Project appraisal
Career development
Vocational training
Development Challenges
Asian Development Bank
Development Management
Skills Development
Performance Evaluation
Evaluation Methods
Evaluation
Job Evaluation
Staff Development
Labor policy
Manpower policy
Promotions
Career development
Job analysis
Participative management
Grievance procedures
Supervisors
Vocational guidance
Labor policy
Rural manpower policy
Career development
Applications for positions
Affirmative action programs
Labor turnover
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