TY - BOOK ID - 85503969 TI - Structural Reforms and Labor Reallocation: A Cross-Country Analysis AU - ElFayoumi, Khalid. AU - Auclair, Gregory. AU - Nadeem, Sanaa. AU - Ndoye, Anta. PY - 2018 SN - 1484348419 1484348397 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Production and Operations Management KW - Human Capital KW - Skills KW - Occupational Choice KW - Labor Productivity KW - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change KW - Industrial Price Indices KW - Economic History: Macroeconomics and Monetary Economics KW - Growth and Fluctuations: General, International, or Comparative KW - Measurement of Economic Growth KW - Aggregate Productivity KW - Cross-Country Output Convergence KW - Labor Economics: General KW - Macroeconomics: Production KW - Production KW - Cost KW - Capital and Total Factor Productivity KW - Capacity KW - Institutions and the Macroeconomy KW - Labour KW - income economics KW - Labor KW - Productivity KW - Labor productivity KW - Total factor productivity KW - Structural reforms KW - Macrostructural analysis KW - Labor economics KW - Industrial productivity KW - Morocco KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:85503969 AB - Institutional and market frictions impose costs on the reallocation of labor from low to high productivity sectors, leading to suboptimal allocations and a loss in aggregate labor productivity. Using cross-country sector-level data, we use a dynamic panel error correction model to compute the speed of sectoral labor adjustment, as well as the contribution of structural reforms in governance, labor and product markets, trade and openness, and the financial sector to lowering the costs of labor reallocation. We find that, on average, sectoral employment shares converge towards equilibrium allocations, closing about 13.7 percent of labor productivity gaps each year; this speed of labor adjustment varies across sectors and income groups. On structural reforms, we find a significant association between more efficient labor reallocation and financial market liberalization, less bureaucracy, strong judicial and regulatory environment, trade liberalization, better education and more flexible labor and product markets. ER -