Structural change means a long-term change in the composition of economic output: agriculture, industry, and services. First, we describe this process in the context of Thailand. Second, we analyse its causes using a simple, comparative static computable general equilibrium model of the Thai...

Inequality at the top is on the rise, and labour income is a progressively larger contributor to concentration at the top. This paper investigates top earnings inequality in South Africa from a sectoral and firm-level perspective, using matched employer-employee administrative data. We also...

In this paper, we evaluate the potential of digitalisation to drive structural transformations toward a sustainable economy. We apply an index decomposition analysis (IDA) to understand the factors influencing energy demand in a panel of 31 high-income countries from 1971 to 2019. The IDA...

In this discussion paper, we explore the concept of "societal innovativeness" as a key driver of transformative regional development, particularly within the context of regions facing structural weaknesses. Our explorative study delves into the multifaceted nature of societal innovativeness,...

Gender gaps in employment have narrowed but remain substantial, particularly among couples. To estimate how improved female wage opportunities influence partners' employment choices, I exploit demand-driven wage changes in job tasks and German administrative data. Results indicate women respond...

We employ the WTO Global Trade Model (GTM) to generate quantitative projections on the expected long-run impact of digitalization on global trade patterns. Five trends are modelled: (i) adoption of artificial intelligence which raises productivity growth; (ii) digitalization reducing trade...

This paper analyzes whether Chinese aid and other forms of official finance affect structural transformation in low- and-middle income countries. Specifically, we employ an instrumental variables (IV) approach to causally analyze the effect on the Economic Complexity Index of 98 recipient...

African economies are undergoing significant structural transformation, transitioning from agriculture to manufacturing, services, and technology-driven industries. Driven by urbanization, technological innovation, and global trade, this shift offers opportunities for sustainable growth but...

Over the last forty years, Latin American countries (LACs) have experienced a variety of specialization trajectories, while sharing a common pattern of weak and unstable growth. Given the accelerated premature deindustrialization path and the loss of productive capacity, manufacturing has...

The German labor market has undergone profound changes over the last decades. For a long time, the debate on structural change focused on the shift from manufacturing industries to services. This Weekly Report highlights that labor market changes are attributable to three developments: In...

This paper studies the labor market impact of structural change by distinguishing between industry- and occupation-based measures of manufacturing and service employment. Using German data from 1975-2019, we find that 67% of manufacturing jobs lost in manufacturing industries are offset by new...

Worker mobility plays a central role in facilitating structural change and addressing labour shortages in labour markets. This paper examines the incentives for workers to change jobs or occupations by analyzing subsequent gains in earnings and job satisfaction. We distinguish between different...

In the face of rapid demographic transitions, Sub-Saharan African countries stand at a critical juncture where the potential for harnessing a demographic dividend to fuel economic growth is immense. This demographic shift presents both challenges and opportunities, with the right investments in...

This special issue addresses the challenges of the international economy, focusing on structural change, social inclusion, and environmental sustainability. It brings together contributions from senior and young scholars, many from Latin America, to explore multidimensional issues like...

The objective of this paper is to revisit key themes of development literature in the light of novel emerging approaches. Applying complexity economic tools, evidence is presented to argue that, along the development trajectory of countries, a complexity increase, to be sustainable, must go hand...

This paper explores a semiparametric version of a time-varying regression, where a subset of the regressors have a fixed coefficient and the rest a time-varying one. We provide an estimation method and establish associated theoretical properties of the estimates and standard errors in extended...

Inspired by the literature on social polarisation and residential segregation we draw on a probabilistic approach to pursue the evolution of household location preferences in West Germany. Using microdata from the German Socio-Economic Panel (SOEP) for the period 1984-2020 we demonstrate that...

We extend the monitoring of structural breaks in classic cointegration proposed by Wagner and Wied (2017) to explicitly allow for fractional cointegration and breaks in these fractional relations with possible deterministic trends. To estimate the parameters we use a fully modified OLS estimator...

This work presents the evolutionary growth theory, which studies the drivers and patterns of technological change and production together with the (imperfect) mechanisms of coordination among a multitude of firms. This requires to studies economies as complex evolving systems, i.e. as ecologies...

Large and economically diverse countries often face a problem of regional imbalances which goes beyond a simple division between a core and a periphery. In large countries regions "out of the core" demonstrate substantial variety in economic, social and cultural terms, they have difference...

This essay suggests that there is a need for a Catalytic Industrial Policy (CIP) aimed at maximising positive outcomes on three axes at the same time - the green, the digital and the social - in order to speed up their realisation. Respective investments need to be guided in the desired...