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Quantifying the Growth in Services: the Role of Skills, Scale, and Female Labor Supply


  • Min Qiang (Kent) Zhao

    (Xiamen University)

  • Joseph Kaboski

    (University of Notre Dame)

  • Francisco Buera

    (University of California at Los Angeles)


This paper quanties the role that increases in the demand for skill intensive goods and services, the ecient scale of production of services, and female labor supply have in explaining the growth of services. We extend the model in Buera and Kaboski (2012a,b) to a two-person household model, incorporating a joint household decision on home and market production into the model, and allow for skill and sectoral biased technology progress. The calibrated analysis shows that the channels emphasized in the theory are quantitatively important. The rising scale of services, the rising demand for skill-intensive output stemming from rising incomes, skill-biased technical change, and rising female labor supply all play important quantitative roles and together account for the majority of the growth of services. The extended model provides a direct link between female labor supply and the growth of service economy, which is shown to be important in the data.

Suggested Citation

  • Min Qiang (Kent) Zhao & Joseph Kaboski & Francisco Buera, 2013. "Quantifying the Growth in Services: the Role of Skills, Scale, and Female Labor Supply," 2013 Meeting Papers 277, Society for Economic Dynamics.
  • Handle: RePEc:red:sed013:277

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    References listed on IDEAS

    1. Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 969-1006.
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    Cited by:

    1. Fabio Cerina & Alessio Moro & Michelle Petersen Rendall, 2016. "The Role of Gender in Employment Polarization," Discussion Papers 1704, Centre for Macroeconomics (CFM), revised Jan 2017.
    2. Bridgman, Benjamin, 2016. "Home productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 60-76.

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