02215cas a2200277 a 4500 AALejournalIMF018338 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484346983 1018-5941 BD-DhAAL BD-DhAAL ElFayoumi, Khalid. Structural Reforms and Labor Reallocation : A Cross-Country Analysis / Khalid ElFayoumi, Anta Ndoye, Sanaa Nadeem, Gregory Auclair. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Institutional and market frictions impose costs on the reallocation of labor from low to high productivity sectors, leading to suboptimal allocations and a loss in aggregate labor productivity. Using cross-country sector-level data, we use a dynamic panel error correction model to compute the speed of sectoral labor adjustment, as well as the contribution of structural reforms in governance, labor and product markets, trade and openness, and the financial sector to lowering the costs of labor reallocation. We find that, on average, sectoral employment shares converge towards equilibrium allocations, closing about 13.7 percent of labor productivity gaps each year; this speed of labor adjustment varies across sectors and income groups. On structural reforms, we find a significant association between more efficient labor reallocation and financial market liberalization, less bureaucracy, strong judicial and regulatory environment, trade liberalization, better education and more flexible labor and product markets. Mode of access: Internet Auclair, Gregory. Nadeem, Sanaa. Ndoye, Anta. IMF Working Papers; Working Paper ; No. 2018/064 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/064/001.2018.issue-064-en.xml IMF e-Library