Proceedings of the 70th International Academic Conference, Madrid

AN ASSESSMENT OF THE DECOUPLING EFFECT THROUGH INNOVATION BASED GROWTH ACCOUNTING FRAMEWORK: AN EMPIRICAL REVIEW OF REGIONAL AND SECTORAL DIFFERENCES IN COLOMBIA 2000-2020.

JUAN RICARDO PERILLA-JIMÉNEZ

Abstract:

This paper studies the sectoral and geographical dimension of decoupling using the so-called Innovation Growth Based Accounting Framework-IBGAF (Perilla 2025).We focus on the Colombian economy which is well known for having high rates of labour informality, low levels of labour productivity and high levels of wage inequality that are concentrated at regional and sectoral dimensions. Based on a detailed dataset that accounts for the distinction between technology and non-technology assets, and formal versus informal and nonpaid job categories over the period 2000-2020, our highly dissagregated analysis allows for a comprehensive understanding of labour dynamics and compensation patterns in the context of developing and middle income countries, where the lack of systematic evidence to account for labour quality and capital heterogeneity has prevented a comprehensive understanding of the decoupling phenomenon Despite well-known measurement challenges in manufacturing and household survey data, our key findings suggest that labour share movements largely reflect structural changes in production and skill-biased remuneration. From a policy perspective, the results highlight the central role of human capital formation and technology adoption in shaping distributional outcomes in middle-income economies.

Keywords: Productivity, growth accounting, Shift-Share Analysis, Labour-Share, Wage inequality.

DOI: 10.20472/IAC.2026.070.016

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