Jula, Dorin () (Ecological University of Bucharest – Management Faculty, and Institute for Economic Forecasting, Romanian Academy) Jula, Nicoleta () (Nicolae Titulescu University, Bucharest – Finance and Accounting Faculty)
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The 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.
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Find related papers by JEL classification: E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
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