Work

Does tertiarisation slow down productivity growth? A Kaldorian–Baumolian analysis across 10 developed economies

Year: 2022

Type: article

Abstract: This study examines the impact of the expansion of the service sector on labour productivity growth in 10 developed economies, reaching back to the late 1970s. The main research novelty is that it combines both Kaldorian and Baumolian insights to develop a new shift‐share decomposition that, consistent with Kaldorian theory, endogenises productivity growth at the industry level with respect to structural change, and, consistent with the Baumolian framework, includes the impact that arises from the cumulative reallocation of nominal output and employment. Our results show that tertiarisation leads to a gradual decrease in productivity growth in most of these economies.

Source: Metroeconomica

DOI: 10.1111/meca.12409

Authors: Adrián Rial, Rafael Fernández

Institution: Universidad Complutense de Madrid

Language: English

Topic: Economic Theory and Policy

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,950