The Allocation of Talent and U.S. Economic Growth
Over the last 50 years, there has been a remarkable convergence in the occupational distribution between white men, women, and blacks. We measure the macroeconomic consequences of this convergence through the prism of a Roy model of occupational choice in which women and blacks face frictions in the labor market and in the accumulation of human capital. The changing frictions implied by the observed occupational convergence account for 15 to 20 percent of growth in aggregate output per worker since 1960.
We are grateful to Raquel Fernandez, Kevin Murphy, and seminar participants at Boston College, Boston University, Brown, Chicago, Columbia, CREI, Duke, Harvard, LSE, Michigan, MIT, an NBER EFG meeting, Penn, Princeton, Stanford, Toronto, UBC, UCLA, USC and Yale for helpful comments, and to Huiyu Li and Gabriel Ulyssea for excellent research assistance. Hsieh and Hurst acknowledge support from the University of Chicago's Booth School of Business, and Klenow from the Stanford Institute for Economic Policy Research. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Chang‐Tai Hsieh & Erik Hurst & Charles I. Jones & Peter J. Klenow, 2019. "The Allocation of Talent and U.S. Economic Growth," Econometrica, Econometric Society, vol. 87(5), pages 1439-1474, September. citation courtesy of