The paper combines Baumol's model of structural change with a model of aggregate demand growth in the Keynesian-Kaleckian tradition to predict the dynamics of aggregate employment. The model for the demand regime is estimated with - and Baumol's model for the productivity regime is calibrated on...

In this paper, labor productivity growth and its impacts are studied at the industry level. The development of productivity is analyzed in 54 industries in 14 EU countries and in the US between 1979 and 2001. The conclusion of the study is that the industry structure that leads to fast...