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And second, it should also help to lift productivity growth by encouraging a swifter reallocation of labour from declining to expanding firms.Europe's capital market is being transformed even more radically, thanks to the euro.
Furthermore, this reallocation of labour (structural change) has to be incorporated while studying the convergence process.
Interestingly this ratio has followed an inverse U-pattern suggesting a substantial reallocation of labour during the recession.
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The World Bank calculates that the reallocation of both labour and capital from farms to factories and from state-owned firms to private enterprise accounted for nine-tenths of TFP's contribution to growth in 2000-10.
Cuba's experiment depended on its authoritarian state, which commanded the "reallocation" of labor from cities to farms.
Underlying this is the reallocation of capital and labour from sectors that grew too fat in the boom years.These sources of drag are now diminishing.
AT&T is a massive reallocation-of-assets story, which is what Wall Street loves to bet on.
Programmes that ease efficient job reallocation improve labour market outcomes irrespective of the economic cycle.
Take the example of labour.
Value of labour will collapse.
C Lack of labour.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com