I propose a two-sector endogenous growth model with heterogeneous sectoral productivity and nonlinear hiring costs to … analyse the link between sectoral resource allocation, low productivity growth and stagnant real wages. My results suggest … raises growth of technology, labor productivity and real wages. I show, however, that a slowdown in productivity and …

homogenous accumulation and production functions, an analytical solution is derived. Making use of the theory of nonnegative …

increasing globalisation. In this paper we extend this type of analysis and integrate the effects on productivity growth …, theoretically and empirically. Productivity growth is introduced into the theoretical model making use of the Verdoorn effect or of … productivity growth. Further on, a costpush or Marx/Hicks-effect and hence a positive impact of real wage growth or the wage share …