The Shift to Services: A Review of the Literature
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.
|Date of creation:||Dec 2003|
|Publication status:||published in: Structural Change and Economic Dynamics, 2006, 17 (2), 127-147|
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- Richard Freeman & Ronald Schettkat, 2002.
"Marketization of Production and the US-Europe Employment Gap,"
CEP Discussion Papers
dp0559, Centre for Economic Performance, LSE.
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- 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.
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- Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150-150, March.
- Eileen Appelbaum & Ronald Schettkat, 1999. "Are Prices Unimportant? The Changing Structure of the Industrialized Economies," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 21(3), pages 387-398, April.
- 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.
- Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
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