-seeking activities in the form of bribes have aggregate effects through two channels. First, they generate misallocation of resources … those that succeed at rent-seeking. Second, such activities affect the allocation of resources within firms because rent …-seeking drives resources away from innovation. These two channels can help in understanding why Argentina has more misallocation …

hiring costs to analyse the link between sectoral resource allocation, low productivity growth and stagnant real wages. My … their labor allocation on aggregate growth. Subsidies to high-productivity sector production can alleviate welfare losses …I propose a two-sector endogenous growth model with heterogeneous sectoral productivity and sector-specific, nonlinear …

Misallocation of human capital across sectors can have substantial negative implications for aggregate output. So far …, the literature examining this type of labor misallocation has assumed a Cobb-Douglas production function. Our paper … substitutable than Cobb-Douglas assumes. Our counterfactual results indicate that human capital misallocation can explain …