@article{3fb79349d04947c5bc601de680d51753,
title = "Structural Transformation of Occupation Employment",
abstract = "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.",
author = "Georg Duernecker and Berthold Herrendorf",
note = "Funding Information: Herrendorf thanks the Spanish Ministry of Education for research support (grant ECO2012‐31358). Funding Information: For helpful comments and suggestions, we would like to thank the editor Noam Yuchtman, two referees, Doug Gollin, Bart Hobijn, Rachel Ngai, Edward Prescott, B. Ravikumar, Todd Schoellman, {\'A}kos Valentinyi, Gustavo Ventura, and the audiences at Arizona State University, Canadian Macro Study Group, the Central Bank of Mexico, the CEPR STEG conference on Data and Measurement, the Christmas Meeting of the German Expat Economists in M{\"u}nchen, the Frankfurt–Mannheim Macro Workshop, the IMF Conference on Development, and the St Andrews Workshop on Structural Transformation. Herrendorf thanks the Spanish Ministry of Education for research support (grant ECO2012-31358). All errors are our own. Publisher Copyright: {\textcopyright} 2022 The Authors. Economica published by John Wiley & Sons Ltd on behalf of London School of Economics and Political Science.",
year = "2022",
month = oct,
doi = "10.1111/ecca.12435",
language = "English (US)",
volume = "89",
pages = "789--814",
journal = "Economica",
issn = "0013-0427",
publisher = "Wiley-Blackwell",
number = "356",
}