-country differences in total factor productivity (TFP) that explains the variation in per-capita incomes across countries. We build a … embedding our analysis in a growth model with tradable and non-tradable sectors, we model sectorial productivity differences … human capital accumulation strongly amplifies TFP differences across countries: To explain a 20-fold difference in the …

-country differences in total factor productivity (TFP) that explains the variation in per-capita incomes across countries. We build a … quantitative implications of the theory. Our main finding is that human capital accumulation strongly amplifies TFP differences … across countries. In particular, we find an elasticity of output per worker with respect to TFP of 2.8: a 3-fold difference …

earnings across educational groups and growth in aggregate labor productivity. These restrictions imply modest increases in …