How Much Can Engel's Law and Baumol's Disease Explain the Rise of Service Employment in the United States?
AbstractHigh income elasticity of demand for services and low income elasticity of demand for food (Engel's law), and relatively slow productivity growth in the service sectors (Baumol's disease) have been viewed as key drivers of rising share of services in employment in the United States during the 20th century. How much of the rising share of services can be explained by these two forces? A calibrated model of structural change shows that jointly Engel's law and Baumol's disease could explain about two-thirds of the reallocation of labor into services.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Macroeconomics.
Volume (Year): 10 (2010)
Issue (Month): 1 (September)
Contact details of provider:
Web page: http://www.degruyter.com
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Murat Üngör, 2009.
"De-industrialization of the Riches and the Rise of China,"
DEGIT Conference Papers
c014_040, DEGIT, Dynamics, Economic Growth, and International Trade.
- Murat Ungor, 2011. "De-industrialization of the Riches and the Rise of China," 2011 Meeting Papers 740, Society for Economic Dynamics.
- Casper Ewijk & Maikel Volkerink, 2012.
"Will Ageing Lead to a Higher Real Exchange Rate for the Netherlands?,"
Springer, vol. 160(1), pages 59-80, March.
- Casper van Ewijk & Maikel Volkerink, 2011. "Will ageing lead to a higher real exchange rate for the Netherlands?," CPB Discussion Paper 197, CPB Netherlands Bureau for Economic Policy Analysis.
- Sasaki, Hiroaki, 2012. "Endogenous phase switch in Baumol's service paradox model," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 25-35.
- Fernando Alexandre & Pedro Bação, 2012.
"Portugal before and after the European Union: Facts on Nontradables,"
NIPE Working Papers
15/2012, NIPE - Universidade do Minho.
- Fernando Alexandre & Pedro Bação, 2012. "Portugal Before and After the European Union: Facts on Nontradables," GEMF Working Papers 2013-02, GEMF - Faculdade de Economia, Universidade de Coimbra.
- HORI Takeo & UCHINO Taisuke, 2013. "Competition, Productivity Growth, and Structural Change," Discussion papers 13041, Research Institute of Economy, Trade and Industry (RIETI).
- Chris Papageorgiou & Fidel Pérez Sebastián & María Dolores Guilló Fuentes, 2010.
"A unified theory of structural change,"
Working Papers. Serie AD
2010-34, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Hiroaki Sasaki, 2010. "Endogenous Phase Switch in Baumol’s Service Paradox Model," Discussion papers e-10-010, Graduate School of Economics Project Center, Kyoto University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.