Inter-industries productivity gap and the services employment dynamics
AbstractThe dynamics of employment in final services depends on a set of economic, social and cultural factors. On the other hand, the increase in the population incomes (and the influence of some national factors) leads to an increase in the demand for services. However, the relatively poor productivity (Baumol, Blackman and Wolff, 1989) also determines the increase in prices, this evolution leading to a decrease in the demand for services. In the paper, the conditions in which the effect induced by the demand-income elasticity over the dynamics of the services surpasses the substitution effect generated by the demand-price elasticity are analyzed so that the growth rate of the production in the service sector is higher than the growth rate of the productivity in the same sector. From the different evolution of the two variables results the long-term growth of the share of employment in services in the total employment at the national level.
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.
Bibliographic InfoArticle provided by Institute for Economic Forecasting in its journal Romanian Journal of Economic Forecasting.
Volume (Year): 4 (2007)
Issue (Month): 2 (June)
Contact details of provider:
Postal: Casa Academiei, Calea 13, Septembrie nr.13, sector 5, Bucureşti 761172
Phone: 004 021 3188148
Fax: 004 021 3188148
Web page: http://www.ipe.ro/
More information through EDIRC
Labor productivity; employment; services; price elasticity and income elasticity of demand for services;
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anita Wölfl, 2004. "Productivity Growth in Services Industries: Is There a Role for Measurement?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 66-80, Spring.
- Baumol, William J & Blackman, Sue Anne Batey & Wolff, Edward N, 1985. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," American Economic Review, American Economic Association, vol. 75(4), pages 806-17, September.
- Erwin Diewert, 2005. "Progress in Service Sector Productivity Measurement: Review Article on "Productivity in the U.S. Services Sector: New Sources of Economic Growth"," International Productivity Monitor, Centre for the Study of Living Standards, vol. 11, pages 57-69, Fall.
- Oulton, Nicholas, 2001.
"Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited,"
Oxford Economic Papers,
Oxford University Press, vol. 53(4), pages 605-27, October.
- Nicholas Oulton, 2000. "Must the growth rate decline? Baumol's unbalanced growth revisited," Bank of England working papers 107, Bank of England.
- Gronroos, Christian & Ojasalo, Katri, 2004. "Service productivity: Towards a conceptualization of the transformation of inputs into economic results in services," Journal of Business Research, Elsevier, vol. 57(4), pages 414-423, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Corina Saman).
If references are entirely missing, you can add them using this form.