The B.E. Journal of Macroeconomics
Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui
Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Lambertini, Luisa
2 Issues per year
IMPACT FACTOR 2015: 0.164
5-year IMPACT FACTOR: 0.403
SCImago Journal Rank (SJR) 2015: 0.205
Source Normalized Impact per Paper (SNIP) 2015: 0.317
Impact per Publication (IPP) 2015: 0.222
Sector-Specific Capital, Labor Market Distortions and Cross-Country Income Differences: A Two-Sector General Equilibrium Approach
This paper highlights the significance of labor market distortions in explaining cross-country income differences using a two-sector general equilibrium model that incorporates modern intermediate inputs used in agriculture together with sector-specific human and physical capital. Using the best available information, I construct new sectoral data on quality-adjusted human capital and PPP-adjusted physical capital. Although both types of capital - physical capital in particular - play important roles, using a sample of 43 countries, I find that in terms of capturing the observed disparities, either in relative labor productivity in agriculture or aggregate output per worker between the rich and the poor countries, the role of labor market distortions outweighs the role of either sectoral human or physical capital.
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