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The Astonishing Regularity Of Service Employment Expansion

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  • Ronald Schettkat

Abstract

An update of Victor Fuchs analysis shows an astonishing regularity of the relationship between per capita income and service industry employment. The two major theoretical hypotheses for the growth of the service sector, shifts in final demand towards services and the technological stagnancy of services, are then analyzed. Theories achieve simplicity and clarity from radical assumptions and it is therefore not surprising that empirically both dimensions are relevant. Shifts in final demand to services-especially of private consumption, however, gained importance over the last decades indicating a fundamental change of the division of labor: the marketization of household production, which is analyzed finally. Copyright � 2007 The Author; Journal compilation � 2007 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Metroeconomica.

Volume (Year): 58 (2007)
Issue (Month): 3 (07)
Pages: 413-435

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Handle: RePEc:bla:metroe:v:58:y:2007:i:3:p:413-435

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Cited by:
  1. Christian Gross & Ulrich Witt, 2012. "The Energy Paradox of Sectoral Change and the Future Prospects of the Service Economy," Papers on Economics and Evolution 2012-09, Max Planck Institute of Economics, Evolutionary Economics Group.
  2. Michael Fritsch & Alexandra Schroeter, 2011. "Does Quality Make a Difference? Employment Effects of High- and Low-Quality Start-Ups," Jena Economic Research Papers 2011-001, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Ben Hunt, 2009. "The Declining Importance of Tradable Goods Manufacturing in Australia and New Zealand," IMF Working Papers 09/16, International Monetary Fund.
  4. Martin Andersson & Florian Noseleit, 2011. "Start-ups and employment dynamics within and across sectors," Small Business Economics, Springer, vol. 36(4), pages 461-483, May.
  5. Martin Andersson & Florian Noseleit, 2008. "Start-Ups and Employment Growth - Evidence from Sweden," Jena Economic Research Papers 2008-091, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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