Structural Transformation of Occupation Employment

Georg Duernecker, Berthold Herrendorf

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


We use census data to show that structural transformation reflects a fundamental reallocation of labour from goods to services, instead of a relabelling that occurs when goods-producing firms outsource their in-house service production. The novelty of our approach is that it categorizes labour by occupations, which are invariant to outsourcing. We find that the reallocation of labour from goods-producing to service-producing occupations is a robust feature in censuses from around the world and different time periods. To understand the underlying forces, we propose a tractable model in which uneven occupation-specific technological change generates structural transformation of occupation employment.

Original languageEnglish (US)
Pages (from-to)789-814
Number of pages26
Issue number356
StatePublished - Oct 2022

ASJC Scopus subject areas

  • Economics and Econometrics


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