Structural change and the income of nations

An increase in the supply of skilled labor has been common across world. However, despite rise force, not all countries have achieved high income levels, even when their structural transformation follows same path (from agriculture to industry and, then, from industry to services). Skilled workers might end up either or low TFP sectors, according two opposite theories change (skill-biased structural transformation and stagnant transformation). We show that directed technical change is needed achieve skill-biased therefore, are allocated sectors. present macrodata microdata evidence identify the existence change. reveal U.S., South Korea France, skilled ended sectors due existence technical change process transformation, but Canada. There is a lack clear evidence for Italy Spain.