The Rise of Services: the Role of Skills, Scale, and Female Labor Supply
This paper quantifies the roles of increases in the demand for skill-intensive output, the efficient scale of service production, and female labor supply in the growth of services. We extend the Buera and Kaboski (2012a,b) model to a two-person household, incorporating a joint decision on home and market production, and allow for skill and sectoral biased technology progress. The rising scale of services, the rising demand for skill-intensive output, and skill-biased technical change all play dominant roles. Furthermore, the extended model explains the majority of the increase in female labor supply, which also plays a role in services growth.
We thank Yong Wang for helpful comments, as well as participants at the AEA meetings in San Diego and SED meetings in Seoul. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research, the Federal Reserve Bank of Chicago or the Federal Reserve System.
Joseph P. Kaboski
I ackowledge hat I receive
Francisco J. Buera & Joseph P. Kaboski & Min Qiang Zhao, 2019. "The Rise of Services: The Role of Skills, Scale, and Female Labor Supply," Journal of Human Capital, vol 13(2), pages 157-187.