Heterogeneous labor and structural change in low- and middle-income, resource-dependent countries

Peter Howie, Zauresh Atakhanova

Research output: Contribution to journalArticle

Abstract

In this paper we analyse structural change and its implications for labor productivity growth in Kazakhstan, Malawi, and Zambia, three resource-dependent countries, during the resource boom that lasted from 2001 to 2013. We pay particular attention to the effects of labor heterogeneity by assessing the demand for pre-determined occupations. The effects of structural change on heterogeneous labor markets are studied by developing a model to explain the observed patterns of labor migration between sectors. We use labor force survey data from Kazakhstan and census microdata for Malawi and Zambia available from the IPUMS International database. In-depth examinations are performed using a decomposition technique and multinomial logit regression to examine labor demand patterns. Results show that private services experienced the largest increase in employment across all occupations and relative skill deepening. Substantial decreases in managers occurred in public services. The results indicate that structural change is fundamental in shaping the allocation of individuals across different occupations within the labor market. Moreover, during a resource boom, the results indicate that the public sector experiences a skill-drain that may affect the quality of governance.

LanguageEnglish
JournalEconomic Change and Restructuring
DOIs
Publication statusAccepted/In press - Jan 1 2019

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Resources
Heterogeneous labor
Structural change
Income
Malawi
Zambia
Kazakhstan
Labour market
Logit regression
Data base
Managers
Labour demand
Productivity growth
Labour migration
Survey data
Governance
Micro data
Labor
Labor force
Public sector

Keywords

  • Kazakhstan
  • Labor productivity
  • Malawi
  • Resource boom
  • Structural change
  • Zambia

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

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abstract = "In this paper we analyse structural change and its implications for labor productivity growth in Kazakhstan, Malawi, and Zambia, three resource-dependent countries, during the resource boom that lasted from 2001 to 2013. We pay particular attention to the effects of labor heterogeneity by assessing the demand for pre-determined occupations. The effects of structural change on heterogeneous labor markets are studied by developing a model to explain the observed patterns of labor migration between sectors. We use labor force survey data from Kazakhstan and census microdata for Malawi and Zambia available from the IPUMS International database. In-depth examinations are performed using a decomposition technique and multinomial logit regression to examine labor demand patterns. Results show that private services experienced the largest increase in employment across all occupations and relative skill deepening. Substantial decreases in managers occurred in public services. The results indicate that structural change is fundamental in shaping the allocation of individuals across different occupations within the labor market. Moreover, during a resource boom, the results indicate that the public sector experiences a skill-drain that may affect the quality of governance.",
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