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Outsourcing of services and the productivity recovery in U.S. manufacturing in the 1980s and 1990s

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  • Ten Raa, T.

    (Tilburg University, School of Economics and Management)

  • Wolff, E.N.

Abstract

Manufacturing productivity growth recovered during the 1980s and 1990s, while other sectors, particularly services, did not. In the same period U.S. manufacturing has engaged in the “outsourcing” or “contracting-out” of service functions. Has the recovery of manufacturing been accomplished by industrial reorganization--sloughing off sluggish services--rather than technical progress? We analyze this question by reducing service inputs to their consituent elements of material inputs. Service productivity growth is thus imputed to the goods sectors, reducing the recovery of manufacturing productivity growth in the 1980s by one fifth. The recovery lasted through the 1990s, when high productivity performers in manufacturing have been relatively successful at outsourcing sluggishservices. Copyright Kluwer Academic Publishers 2001
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ten Raa, T. & Wolff, E.N., 2001. "Outsourcing of services and the productivity recovery in U.S. manufacturing in the 1980s and 1990s," Other publications TiSEM b3f18298-300d-4bfe-acb6-e, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:b3f18298-300d-4bfe-acb6-e0c9910a6d69
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    References listed on IDEAS

    as
    1. Donald Siegel & Zvi Griliches, 1992. "Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing," NBER Chapters, in: Output Measurement in the Service Sectors, pages 429-460, National Bureau of Economic Research, Inc.
    2. Raa, Thijs ten & Wolff, Edward N., 1991. "Secondary products and the measurement of productivity growth," Regional Science and Urban Economics, Elsevier, vol. 21(4), pages 581-615, December.
    3. Harry H. Postner, 1990. "The Contracting‐Out Problem In Service Sector Analysis: Choice Of Statistical Unit," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 177-186, June.
    4. Postner, Harry H, 1990. "The Contracting-Out Problem in Service Sector Analysis: Choice of Statistical Unit," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 177-186, June.
    5. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1, March.
    6. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59, pages 185-185.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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