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The Shift to Services: A Review of the Literature

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  • Schettkat, Ronald

    (University of Wuppertal)

  • 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.

Suggested Citation

  • Schettkat, Ronald & Yocarini, Lara, 2003. "The Shift to Services: A Review of the Literature," IZA Discussion Papers 964, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp964
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    References listed on IDEAS

    as
    1. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150-150, March.
    2. Richard Freeman & Ronald Schettkat, 2002. "Marketization of Production and the US-Europe Employment Gap," CEP Discussion Papers dp0559, Centre for Economic Performance, LSE.
    3. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1, October.
    4. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1, October.
    5. Eileen Appelbaum & Ronald Schettkat, 1999. "Are Prices Unimportant? The Changing Structure of the Industrialized Economies," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 21(3), pages 387-398, March.
    6. repec:bla:revinw:v:35:y:1989:i:4:p:409-40 is not listed on IDEAS
    7. Robert Rowthorn & Ramana Ramaswamy, 1999. "Growth, Trade, and Deindustrialization," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 1-2.
    8. Katouzian, M A, 1970. "The Development of the Service Sector: A New Approach," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 362-382, November.
    9. Tom Elfring, 1989. "New Evidence On The Expansion Of Service Employment In Advanced Economies," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(4), pages 409-440, December.
    10. Michael J. Boskin, 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.
    11. Thijs ten Raa & Ronald Schettkat (ed.), 2001. "The Growth of Service Industries," Books, Edward Elgar Publishing, number 2137, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic development; service industries; structural economic change; productivity; employment;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - 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, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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