| Abstract: |
This article explores the contribution of the structural change and the skill
upgrading of the labor force to productivity growth in Tunisia and Turkey in
the post-WorldWar II period. Our growth decomposition shows that productivity
growth is explained by intra-industry changes for both countries during the
import substitution period. Structural change played an important role in
Turkey for a longer period of time than in Tunisia. Based on a regression
analysis, we find evidence that skill upgrading had a causal impact on
productivity growth in Turkey, as productivity has mainly been driven by the
increasing share of highly educated workers within sectors rather than the
reallocation of skilled labor between sectors. In addition, skill upgrading
has been as important as physical capital accumulation. On the other hand, OLS
and IV evidence do not support similar mechanisms for Tunisia. |