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The productivity paradox: evidence from indirect indicators of service sector productivity growth

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  • Edward N. Wolff

Abstract

Whereas difficulties in measuring the output of service sectors have been well documented, input measures are reasonably accurate. Using U.S. input-output data for the period 1958-87 and a number of indices of skill and occupational change derived from the Dictionary of Occupational Titles and decennial census data covering the period 1960-1990, I find strong evidenec that among all industries in the economy industry productivity growth is positively related to R&D intensity and knowledge spillovers from other industries but negatively related to major restructuring of technology.
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Suggested Citation

  • Edward N. Wolff, 1999. "The productivity paradox: evidence from indirect indicators of service sector productivity growth," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 281-308, April.
  • Handle: RePEc:cje:issued:v:32:y:1999:i:2:p:281-308
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    References listed on IDEAS

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    1. Bodie, Zvi, 1976. "Common Stocks as a Hedge against Inflation," Journal of Finance, American Finance Association, vol. 31(2), pages 459-470, May.
    2. Pesando, James E, 1984. "Employee Evaluation of Pension Claims and the Impact of Indexing Initiatives," Economic Inquiry, Western Economic Association International, vol. 22(1), pages 1-17, January.
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    Cited by:

    1. Lionel Fontagné & Jean Fouré, 2013. "Opening a Pandora's Box: Modelling World Trade Patterns at the 2035 Horizon," Working Papers 2013-22, CEPII research center.
    2. Qin, Duo, 2006. "Is China's growing service sector leading to cost disease?," Structural Change and Economic Dynamics, Elsevier, vol. 17(3), pages 267-287, September.
    3. Jean Chateau & Lionel Fontagné & Jean Fouré & Åsa Johansson & Eduardo Olaberría, 2015. "Trade patterns in the 2060 world economy," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 67-100.
    4. repec:ebl:ecbull:v:6:y:2005:i:3:p:1-9 is not listed on IDEAS
    5. repec:hal:wpaper:hal-01299851 is not listed on IDEAS
    6. Duo QIN, "undated". "Is China’s Rising Service Sector Leading to Cost Disease?," EcoMod2004 330600116, EcoMod.
    7. Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 127-147, June.
    8. Roy Trivedi, Smita, 2011. "The growing dichotomy between real and financial sectors," MPRA Paper 41421, University Library of Munich, Germany.
    9. Maroto-Sánchez, Andrés & Cuadrado-Roura, Juan R., 2009. "Is growth of services an obstacle to productivity growth? A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 254-265, December.
    10. Pang, Rui-Zhi & Deng, Zhong-Qi & Hu, Jin-li, 2015. "Clean energy use and total-factor efficiencies: An international comparison," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1158-1171.
    11. Alan Johnston & Darrell Porter & Trevor Cobbold & Robert Dolamore, 2001. "Productivity in Australia's wholesale and retail trade," Development and Comp Systems 0105003, EconWPA.
    12. Rosalie McLachlan & Colin Clark & Ian Monday, 2002. "Australia's service sector: a study in diversity," Development and Comp Systems 0203002, EconWPA.
    13. Esther Gordo & Javier Jareño & Alberto Urtasun, 2006. "Radiografía del sector servicios en España," Occasional Papers 0607, Banco de España;Occasional Papers Homepage.

    More about this item

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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