Working Paper: CEPR ID: DP3068
Authors: Stephen John Nickell; Stephen Redding; Joanna K. Swaffield
Abstract: A key feature of OECD economic growth since the early 1970s has been the secular decline in manufacturing?s share of GDP and the secular rise of service sectors. This Paper examines the role played by relative prices, technology, factor endowments and labour market institutions in the process of ?de-industrialization.? We find a statistically significant and quantitatively important effect of levels of educational attainment. Furthermore, the production structure responds differently to the educational attainment of men and women. Finally, countries with stronger levels of employment protection are shown to adjust more slowly to changes in prices, technology and factor endowments.
Keywords: Deindustrialization; Educational Attainment; Factor Endowments; Labour Market Institutions; Specialization
JEL Codes: F00; J00; O00
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| higher levels of educational attainment (I24) | production structures (L23) |
| educational attainment (I21) | production structures (differential impacts based on gender) (J21) |
| educational attainment (I21) | specialization in different industries (L89) |
| labor market institutions (J08) | speed of adjustment to changes in prices and technology (O49) |
| stronger employment protection (J89) | slower adjustment to changes in prices and technology (O39) |