IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/0486.html
   My bibliography  Save this paper

Economic Growth and the Rise of Service Employment

Author

Listed:
  • Victor R. Fuchs

Abstract

The distribution of employment among Agriculture, Industry, and Service within countries is closely related to the level of real Gross Domestic Product per capita. As real income rises, Agriculture's share falls, Service employment rises, and Industry’s share rises to a peak at about $3,300 (1970 dollars) per capita and then declines. U.S. time series and OECD cross-sections follow almost identical patterns of employment change. The decline of Agriculture is attributable primarily to differences in income elasticity of demand but the shift from Industry to Service is attributable primarily to differential rates of growth of output per worker. Economic growth also contributes to the rise of service employment through an increase in female labor force participation because families with working wives tend to spend a higher proportion of their income on services. Productivity tends to grow less rapidly in the Service sector than in the rest of the economy, but the shift of employment to Services was not a major factor in the slowing of aggregate productivity in the United States in the 1970's.

Suggested Citation

  • Victor R. Fuchs, 1980. "Economic Growth and the Rise of Service Employment," NBER Working Papers 0486, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:0486
    Note: LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w0486.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jacob Mincer, 1962. "Labor Force Participation of Married Women: A Study of Labor Supply," NBER Chapters,in: Aspects of Labor Economics, pages 63-105 National Bureau of Economic Research, Inc.
    2. Kravis, Irving B & Heston, Alan W & Summers, Robert, 1978. "Real GDP per Capita for More Than One Hundred Countries," Economic Journal, Royal Economic Society, vol. 88(350), pages 215-242, June.
    3. Michael Grossman & Victor R. Fuchs, 1973. "Intersectoral Shifts and Aggregate Productivity Change," NBER Chapters,in: Annals of Economic and Social Measurement, Volume 2, number 3, pages 227-243 National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guna Raj Bhatta, 2014. "Structural Change and Per Capita Income in Nepal: Empirical Evidences," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 26(2), pages 41-60, October.
    2. Lukiyanova Anna, 2003. "Transition to Postindustrial Society? A Study of the Service Sector Employment in Russia," EERC Working Paper Series 03-09e, EERC Research Network, Russia and CIS.
    3. Dipa Mukherjee & Rajarshi Majumder, 2008. "Tertiarisation of the Indian labour market: a new growth engine or sending distress signals?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 13(4), pages 387-413.
    4. Hagen Krämer, 2011. "Dienstleistungen im Strukturwandel: Entwicklung und Perspektiven für Wachstum und Beschäftigung in Europa," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 37(2), pages 269-291.
    5. D'Agostino, Antonello & Serafini, Roberta & Ward-Warmedinger, Melanie E., 2006. "Sectoral Explanations of Employment in Europe: The Role of Services," IZA Discussion Papers 2257, Institute for the Study of Labor (IZA).
    6. Uwitonze, Eric & Heshmati, Almas, 2016. "Service Sector Development and its Determinants in Rwanda," IZA Discussion Papers 10117, Institute for the Study of Labor (IZA).
    7. P.W. Daniels, 2011. "Service industries at a crossroads: some fragile assumptions and future challenges," The Service Industries Journal, Taylor & Francis Journals, vol. 32(4), pages 619-639, June.
    8. Angela Cipollone & Carlo D'Ippoliti, 2009. "Women's Employment: Beyond Individual Characteristics vs. Contextual Factors Explanations," Working Papers CELEG 0901, Dipartimento di Economia e Finanza, LUISS Guido Carli.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0486. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: () or (Joanne Lustig). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.