Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296588 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 2405
Publisher: 
Johannes Kepler University of Linz, Department of Economics, Linz
Abstract: 
The development accounting literature assumes that sector labor income shares and output per person across countries are not correlated. In this paper, I show that the data reject this assumption for a large set of countries. The labor shares in the manufacturing and the market-services sectors increase significantly more with output per person than in other sectors, leading to a shift of labor income across sectors with economic development. The empirical evidence suggests that capital deepening is the primary driver of these patterns. Researchers can directly use the new dataset of labor shares to calibrate multisector models.
Subjects: 
Capital intensity
Economic development
Input-output tables
Multisector models
Sector development accounting
JEL: 
E01
E25
O11
Document Type: 
Working Paper

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