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The Shift to Services: A Review of the Literature

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Author Info
Schettkat, Ronald () (Russell Sage Foundation, Utrecht University and IZA Bonn)
Yocarini, Lara (Utrecht University)
Abstract

The present paper provides an overview of literature on the shift to services. It follows the three dimensions of structural change - final demand, the inter-industry division of labor and inter-industry productivity differences. It first looks at the ‘classics’, however (Fisher (1935), Clark (1940), Fourastié (1949), Baumol (1967, 2001), and Fuchs (1968)). Next, it treats studies analyzing differences in service-industry employment, and offers a discussion of studies focussing on final demand as an explanation of higher service shares in GDP. It also provides an overview of studies analyzing the inter-industry division of labor on the basis of input-output data. Finally, it discusses studies following Baumol’s cost-disease hypothesis.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 964.

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Length: 44 pages
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:iza:izadps:dp964

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Related research
Keywords: structural economic change; service industries; economic development; productivity; employment;

Find related papers by JEL classification:
E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
L0 - Industrial Organization - - General
L8 - Industrial Organization - - Industry Studies: Services
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O3 - Economic Development, Technological Change, and Growth - - Technological Change
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
N1 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations

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References listed on IDEAS
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.:
  1. Richard B. Freeman & Ronald Schettkat, 2002. "Marketization of Production and the US-Europe Employment Gap," NBER Working Papers 8797, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
  3. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
  4. Elfring, Tom, 1989. "New Evidence on the Expansion of Service Employment in Advanced Economies," Review of Income and Wealth, Blackwell Publishing, vol. 35(4), pages 409-40, December.
  5. Katouzian, M A, 1970. "The Development of the Service Sector: A New Approach," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 362-82, November. [Downloadable!] (restricted)
  6. Boskin, Michael J, et al, 1998. "Consumer Prices, the Consumer Price Index, and the Cost of Living," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 3-26, Winter. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Andreas Breitenfellner & Antje Hildebrandt, 2006. "High Employment with Low Productivity? The Service Sector as a Determinant of Economic Development," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 110-135, May 2006. [Downloadable!]
  2. BONET, Jaime, 2007. "La terciarización de las estructuras económicas regionales en Colombia," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
    Other versions:
  3. Carlo Altavilla, Antonio Garofalo, Concetto Paolo Vinci, 2005. "Designing the Optimal Length of Working Time," CELPE Discussion Papers 91, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
  4. Antonello D’Agostino & Roberta Serafini & Melanie Ward-Warmedinger, 2006. "Sectoral explanations of employment in Europe - the role of services," Working Paper Series 625, European Central Bank. [Downloadable!]
    Other versions:
  5. D'Agostino, Antonello & Serafini, Roberta & Ward, Melanie, 2006. "Sectoral explanations of employment in Europe: the role of services," Research Technical Papers 8/RT/06, Central Bank & Financial Services Authority of Ireland (CBFSAI). [Downloadable!]
  6. Esther Gordo & Javier Jareño & Alberto Urtasun, 2006. "Radiografía del sector servicios en España," Banco de España Occasional Papers 0607, Banco de España. [Downloadable!]
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