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The Astonishing Regularity Of Service Employment Expansion

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  • Ronald Schettkat

Abstract

An update of Victor Fuchs analysis shows an astonishing regularity of the relationship between per capita income and service industry employment. The two major theoretical hypotheses for the growth of the service sector, shifts in final demand towards services and the technological stagnancy of services, are then analyzed. Theories achieve simplicity and clarity from radical assumptions and it is therefore not surprising that empirically both dimensions are relevant. Shifts in final demand to services—especially of private consumption, however, gained importance over the last decades indicating a fundamental change of the division of labor: the marketization of household production, which is analyzed finally.

Suggested Citation

  • Ronald Schettkat, 2007. "The Astonishing Regularity Of Service Employment Expansion," Metroeconomica, Wiley Blackwell, vol. 58(3), pages 413-435, July.
    • Handle: RePEc:bla:metroe:v:58:y:2007:i:3:p:413-435
    DOI: 10.1111/j.1467-999X.2007.00276.x
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    References listed on IDEAS

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    Cited by:

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    2. Michael Fritsch & Alexandra Schroeter, 2011. "Does Quality Make a Difference?: Employment Effects of High- and Low-Quality Start-Ups," Discussion Papers of DIW Berlin 1128, DIW Berlin, German Institute for Economic Research.
    3. Mr. Benjamin L Hunt, 2009. "The Declining Importance of Tradable Goods Manufacturing in Australia and New Zealand: How Much Can Growth Theory Explain?," IMF Working Papers 2009/016, International Monetary Fund.
    4. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2015. "The Role of Foreign Networks for Firm Export of Services," Working Papers 2015:6, Örebro University, School of Business.
    5. Andreas Hatzigeorgiou & Magnus Lodefalk, 2019. "Migration and servicification: Do immigrant employees spur firm exports of services?," The World Economy, Wiley Blackwell, vol. 42(11), pages 3368-3401, November.
    6. Alessandro Sarra & Claudio Berardino & Davide Quaglione, 2019. "Deindustrialization and the technological intensity of manufacturing subsystems in the European Union," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(1), pages 205-243, April.
    7. Ulrich Witt & Christian Gross, 2020. "The rise of the “service economy” in the second half of the twentieth century and its energetic contingencies," Journal of Evolutionary Economics, Springer, vol. 30(2), pages 231-246, April.
    8. Nicola De Liso & Anna Serena Vergori, 2017. "The Different Approaches to the Study of Innovation in Services in Europe and the USA," Metroeconomica, Wiley Blackwell, vol. 68(1), pages 121-146, February.
    9. Andersson, Martin & Noseleit, Florian, 2008. "Start-Ups and Employment Growth - Evidence from Sweden," Working Paper Series in Economics and Institutions of Innovation 155, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    10. Christian Gross & Ulrich Witt, 2012. "The Energy Paradox of Sectoral Change and the Future Prospects of the Service Economy," Papers on Economics and Evolution 2012-09, Philipps University Marburg, Department of Geography.
    11. Andersson, Martin & Lavesson, Niclas & Partridge, Mark D., 2019. "Local Rates of New Firm Formation: An Empirical Exploration using Swedish Data," Working Paper Series 1290, Research Institute of Industrial Economics.
    12. Codrina Rada & Ansel Schiavone & Rudiger von Arnim, 2022. "Goodwin, Baumol & Lewis: How structural change can lead to inequality and stagnation," Metroeconomica, Wiley Blackwell, vol. 73(4), pages 1070-1093, November.

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