Industrial policy has returned to centre stage after decades of neglect or worse, yet its revival is deeply ambivalent. This chapter argues that effective and desirable industrial policies rests on the alignment of three mutually reinforcing conditions, namely, first, public measures shaping the...

This paper studies the long-run effects of foreign tourism on local labor markets and economic development in advanced economies, using Italy as a case study. To isolate plausibly exogenous variation in tourist arrivals, I construct a shift-share measure that interacts changes in outbound...

Using French micro-data, we show that rapid structural transformation in densely populated cities is driven by the expansion of large tradable services firms and the departure of large manufacturing firms. This reallocation is accompanied by sharply rising house prices but without a compensating...

Emerging economies confront unprecedented challenges mobilizing finance for green industrial transitions while maintaining development trajectories. This paper examines implementation effectiveness across India, South Africa, Brazil, and Indonesia-major economies representing diverse political...

The environmental Kuznets curve postulates an inverted-U relationship between environmental degradation and economic growth. And economic growth has been synonymous with structural transformation. How do patterns of growth and structural transformation relate to carbon emissions? Based on data...

Under China's dual circulation strategy, traditional industries that are highly dependent on international supply chains face significant challenges requiring restructuring. This study develops a multi-scale analytical model that integrates the Global Trade Analysis Project (GTAP) with the...

We analyze the effects of international trade on structural change. We show a positive correlation between openness and the share of the agricultural sector for developing economies and present a model to rationalize this stylized fact. We built a two-sector model to compare the autarky and open...

Germany is at the onset of a profound structural change that will have a lasting impact on the dynamics of productivity and economic growth. Global megatrends such as changes in international trade, digitalisation, decarbonisation and demographic change will accelerate structural change and have...

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...

We revisit the iconic Kuznets (1955) paper, which postulated a clear positive relationship between inequality and economic development in the early stages of structural transformation. Using a newly released global dataset on income inequality-the WIID Companion-we set out the stylized facts of...

This report summarises structural developments in EU labour markets from 1995 to 2024. In particular, it describes trends in occupational and sectoral employment at the Member State and aggregate EU levels - mainly the professionalisation and occupational upgrading of employment on the one hand...

This report summarises structural developments in EU labour markets from 1995 to 2024. In particular, it describes trends in occupational and sectoral employment at the Member State and aggregate EU levels - mainly the professionalisation and occupational upgrading of employment on the one hand...

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...

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...

Recent researchers have observed that long-memory is prevalent in mortality data. Related to a quantifiable measure of persistence, it is an important characteristic of mortality dynamics. However, prior researchers did not consider potential change in the persistence degree and assumed it is...

We study how students adjust their early career choices in response to economic crises and how these decisions affect their long-run labor market outcomes. Focusing on Sweden's deep recession in the early 1990s - which hit the manufacturing and construction sectors hardest - we first show that...

This study examines the influence of microfinance institutions' (MFIs) financial innovation on structural transformation. For this purpose, we considered a household survey from Nepal. The survey collected data on various individual and household characteristics, borrowing patterns, and...

The aim of this paper is to identify key enables, gaps and policy mechanisms that facilitate the creation of quality jobs, promote inclusive economic transformation and ensure that all communities, particularly the most vulnerable, are supported by Just Transition. Drawing on comparative...

The aim of this paper is to identify key enables, gaps and policy mechanisms that facilitate the creation of quality jobs, promote inclusive economic transformation and ensure that all communities, particularly the most vulnerable, are supported by Just Transition. Drawing on comparative...