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The Contracting‐Out Problem In Service Sector Analysis: Choice Of Statistical Unit

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  • Harry H. Postner

Abstract

The contracting‐out problem in service sector analysis is defined and considered from the viewpoint of choice of statistical unit. It is shown that both the enterprise statistical unit and the establishment‐ based unit are unsatisfactory for economic analysis. This leads to the recommendation for an “intermediate” statistical unit, namely the “division.” The division, by construction and definition, is shown to have desirable properties for analysis of the contracting‐out problem (and own‐account problem) relating to services. Some empirical evidence with respect to the Canadian service sector economy supports the analysis and suggests a new interpretation of conventional service sector growth statistics.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:revinw:v:36:y:1990:i:2:p:177-186
    DOI: 10.1111/j.1475-4991.1990.tb00279.x
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    Cited by:

    1. de Groot, H.L.F., 1998. "Macroeconomic Consequences of Outsourcing. An Analysis of Growth, Welfare and Product Variety," Discussion Paper 1998-43, Tilburg University, Center for Economic Research.
    2. Fixler, Dennis J. & Siegel, Donald, 1999. "Outsourcing and productivity growth in services," Structural Change and Economic Dynamics, Elsevier, vol. 10(2), pages 177-194, June.
    3. Sandro Montresor & Giuseppe Vittucci Marzetti, 2011. "The deindustrialisation/tertiarisation hypothesis reconsidered: a subsystem application to the OECD7," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(2), pages 401-421.
    4. Thijs Raa & Edward Wolff, 2001. "Outsourcing of Services and the Productivity Recovery in U.S. Manufacturing in the 1980s and 1990s," Journal of Productivity Analysis, Springer, vol. 16(2), pages 149-165, September.
    5. G. Vittucci Marzetti, 2008. "Input-output data and service outsourcing. A reply to Dietrich, McCarthy and Anagnostou," Working Papers 621, Dipartimento Scienze Economiche, Universita' di Bologna.

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