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The Productivity Paradox of Business-Related Services

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  • Philip Flegler
  • Hagen Krämer

Abstract

In the period from 1991 to 2018, not only did professional, scientific, and technical services in Germany show the lowest growth in labor productivity compared to all other sectors of the economy, but labor productivity in this sector of the economy actually declined. Philip Flegler and Hagen Krämer, of Karlsruhe University of Applied Sciences, discuss some possible explanations for this phenomenon.

Suggested Citation

  • Philip Flegler & Hagen Krämer, 2021. "The Productivity Paradox of Business-Related Services," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(03), pages 38-45, March.
    • Handle: RePEc:ces:ifosdt:v:74:y:2021:i:03:p:38-45
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    File URL: https://www.ifo.de/DocDL/sd-2021-03-flegler-kraemer-produktivitaetsparadoxon-dienstleister.pdf
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    References listed on IDEAS

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    2. Hartwig, Jochen & Krämer, Hagen, 2019. "The ‘Growth Disease’ at 50 – Baumol after Oulton," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 463-471.
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    5. Nadim Ahmad & Jennifer Ribarsky & Marshall Reinsdorf, 2017. "Can potential mismeasurement of the digital economy explain the post-crisis slowdown in GDP and productivity growth?," OECD Statistics Working Papers 2017/9, OECD Publishing.
    6. Saam, Marianne & Viete, Steffen & Schiel, Stefan, 2016. "Digitalisierung im Mittelstand: Status Quo, aktuelle Entwicklungen und Herausforderungen," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 145963, September.
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    Cited by:

    1. Kritikos, Alexander S. & Schiersch, Alexander & Stiel, Caroline, 2021. "The Productivity Puzzle in Business Services," IZA Discussion Papers 14610, Institute of Labor Economics (IZA).
    2. Hartwig Jochen & Krämer Hagen M., 2023. "Revisiting Baumol’s Disease: Structural Change, Productivity Slowdown and Income Inequality," Intereconomics: Review of European Economic Policy, Sciendo, vol. 58(6), pages 320-325, December.
    3. Alexander S. Kritikos & Alexander Schiersch & Caroline Stiel, 2022. "The productivity shock in business services," Small Business Economics, Springer, vol. 59(3), pages 1273-1299, October.

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