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Title: Labour markets and structural transformation
Author: Monteforte, Fabio
ISNI:       0000 0004 2718 6722
Awarding Body: University of Bristol
Current Institution: University of Bristol
Date of Award: 2011
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Although structural transformation has always been recognized as a distinctive feature of development, there has been less effort in the literature to qualify and quantify the two-way interaction with labour markets. The thesis contributes to this task by proposing three different small-scale general equilibrium models of structural change with a detailed specification of the labour market, and calibrates them to the Spanish postwar experience. The first chapter proposes a dual-sector Solow-type model where labour reallocation interacts with the presence of involuntary unemployment in non-agriculture, as a consequence of efficiency wages considerations. The urban sector features also increasing returns to scale, and the model is used to quantify the role played by externalities on aggregate TFP growth. Furthermore, the model has been calibrated under alternative assumptions on the degree of openness, and job separation rates. Results suggest increasing returns matters most in the last three decades of the century and the performance of the model significantly improves under the closed economy assumption. In the second chapter, the role of sectoral TFPs as main drivers of structural change is investigated. In this case, involuntary unemployment arises from matching frictions in the urban sector. This specification of the labour market allows a more precise calibration to the actual Spanish experience, providing ways to account also for the transition from dictatorship to democracy of the late 1970s. Various counterfactual simulations lead us to conclude towards a greater importance of productivity improvements in agriculture, while changes in labour market institutions deploy their effects mainly within the labour market itself, but have only a modest effect on the pattern of structural change. Finally, in the third chapter we endogenize the saving rate, introduce taxes and consider home production and worker heterogeneity within agriculture.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available