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Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-2315

Acemoglu, Daron; Zilibotti, Fabrizio (2001). Productivity Differences. Quarterly Journal of Economics, 116(2):563-606.

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Many technologies used by the LDCs are developed in the OECD economies and are designed to make optimal use of the skills of these richer countries' workforces. Differences in the supply of skills create a mismatch between the requirements of these technologies and the skills of LDC workers, and lead to low productivity in the LDCs. Even when all countries have equal access to new technologies, this technology-skill mismatch can lead to sizable differences in total factor productivity and output per worker. We provide evidence in favor of the cross-industry productivity patterns predicted by our model, and also show that technology-skill mismatch could account for a large fraction of the observed output per worker differences in the data.

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
DDC:330 Economics
Date:May 2001
Deposited On:01 Apr 2008 09:27
Last Modified:27 Nov 2013 23:36
Publisher:MIT Press
Publisher DOI:10.1162/00335530151144104
Citations:Web of Science®. Times Cited: 169
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Scopus®. Citation Count: 178

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