Horizontal and Vertical Polarization: Task-Specific Technological Change in a Multi-Sector Economy

Abstract

Previously circulated as "Managing a Polarized Structural Change."The theoretical model in this paper was developed in conjunction with another project sponsored by PEDL and DFID, whose financial support (MRG 2356) we gratefully acknowledge.The paper benefited from comments and suggestions from many seminar and conference participants.We are grateful to Frederico Belo and Nancy Stokey in particular, whose conference discussions helped greatly improve the paper.We also thank Sangmin Aum for outstanding research assistance.The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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