Factor Reallocation and Growth: What If There Are Labor Saving Innovations?


  • Documentos CEDE


  • We claim that the standard methodology to study the effects of the reallocation of factors on growth is not adequate in the presence of biased innovations. Labor-saving innovations increase output per worker and may decrease the marginal productivity of labor. Therefore, a reallocation of labor from a sector with higher output per worker to a sector with lower output per worker may be productivity enhancing.

fecha de publicación

  • 2019-02

Líneas de investigación

  • Capital Using and Labor Saving Innovations
  • Factor Income Shares
  • Factor Reallocation


  • 17199