Structural transformation — the movement of workers from low-productivity to high-productivity activities and sectors — is an essential feature of rapid and sustained growth. This traditional pathway to economic development is becoming more challenging to sustain for low- and middle-income developing countries as more countries compete over a place in global value chains.
This project looks at the challenges low- and middle-income countries are experiencing with ‘new’ forms of structural transformation, including tertiarization and premature deindustrialization. In light of these contemporary patterns the project will focus on producing knowledge and policy alternatives addressing the challenges of different varieties of structural transformation. This includes looking into the macro-drivers of different varieties of structural transformation and the labour market, and employment outcomes including wage inequality of different varieties of structural transformation.
What are the drivers of the ‘new’ forms of structural transformation versus the ‘old’? Can tertiarization and premature deindustrialisation be reversed?
What are the possibilities for sustained growth with new forms of structural transformation? What are the implications of labour-saving technical change?
What are the jobs and livelihoods implications of the old and new forms of structural transformation for women and disadvantaged groups in particular? What are the poverty and inequality dynamics?