Structural change and employment trends

This chapter attempts to make sense of the trends of structural change over the last 50 years. Structural change unfolds over time but is best analysed through the structure of countries’ economies with the same income level, even if that is attained at different points in time. The structural change of an economy is not just associated with the growth of that economy, but lies at its very core, because it corresponds to a transition from lower to higher productivity sectors. Up to roughly the income level of advanced economies, one can grasp such a transition by looking at shifts from one sector to another (mainly from agriculture to industry and services), but at higher incomes, average employment-to-output ratios converge and further evidence of structural change can only be seen within sectors.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure