increased capital intensity of mining, with the arrival of new labor-saving machines, technology and tools reducing the need for labor directly in the mining sector.<sup>20</sup> For business and other services exports and especially agricultural exports, the direct employment creation is much larger than the indirect job creation. Direct job creation represented 88 percent of jobs linked to agricultural exports, because linkages to supplying sectors in agriculture are restricted to few inputs such as fertilizers, other chemicals, seeds, and planting materials. However, the share of indirect jobs linked to agricultural exports has doubled since 1995 (not shown). Similarly, business and particularly other services exports create jobs mainly directly within the export sectors, with the indirect contribution representing one-third in business services and one-fifth in other services.

**Figure 15: Direct and indirect employment in exports, by broad sector and income level, 2018**

<!-- Start of picture text --> 100%<br>80%<br>60%<br>40%<br>20%<br>0%<br>Agriculture & Mining Total Manufacturing Total Business Services Other Services<br>Fishing<br>direct indirect reimported<br>High Upper- middle Lower- middle High Upper- middle Lower- middle High Upper- middle Lower- middle High Upper- middle Lower- middle High Upper- middle Lower- middle<br><!-- End of picture text --> Source: Own computations. Data: OECD TiE. The country sample covers 38 OECD countries plus 13 non-OECD countries. Note: Employment in exports can be decomposed into its (1) direct contribution in the exporting sector, (2) indirect contribution in sectors supplying to the export sector, and (3) contribution of reimported inputs.

The analysis highlights different upgrading patterns along countries’ income levels for broad sectors. In business and other services, the indirect job creation loses importance for upper-middle and highincome countries (Figure 15). As countries develop, the range of possible services to be exported seems to increase and thus the amount of jobs linked to those exports. For instance, rather than exporting only support services more innovative countries offer sophisticated services exports including research and development, design, IT and programming, or financial services, among others. While the direct contribution is generally lower in manufacturing, it is highest for high-income countries amounting to 46 percent in 2018 compared to less than 30 percent in upper-middle income countries. It may be possible that as countries develop, exports create new job opportunities within the manufacturing sector, such as the increased need for technicians, engineers, and managers (see section 4).<sup>21</sup> The higher sophistication of services in high-income countries may also explain the patterns in agriculture and mining. In agriculture, the share of indirect jobs created in supplying sectors increases at higher income levels, in line with higher intermediate usage intensity of richer countries in the production of agriculture (Sposi 2019). While the contribution of supplying sectors to jobs in mining exports is much higher than in agriculture, their role increases slightly with higher income levels (Figure 15). Lower-middle income countries tend to create employment mainly in the agricultural export sectors with few linkages to upstream sectors such as necessary transport and logistics services to export these agricultural goods.

> 20 Technological progress in the U.S. copper sector, for instance, has been linked to labor productivity growth in the 1970s, 1980s and 1990s. It includes the use of solver extraction and electrowinning technology, larger trucks, shovels and drills, in-pit mobile crushers and conveyor belt systems, computerized scheduling of trucks, and real-time process controls (Sánchez and Hartlieb 2020).

> 21 If these activities are performed within the boundaries of the same company, rather than by an independent services provider, they should be statistically counted as part of the direct job contribution.

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