Labor Movement and Economic Contribution : Evidence from Europe

A movement of labor across sectors is the familiar scenario in every country. Labor generally moves from relatively low-paid sector to relatively high-paid sector. The purpose of this study is to estimate the effect of a change in employment in agricultural, industrial, and service sector on economic performance through panel data analysis. The result reveals that only a movement in industrial sector positively contributes to the economy which leads to the integrated policy aimed at improving the condition in manufacturing sector.