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The Rise of Services: the Role of Skills, Scale, and Female Labor Supply

Francisco J. Buera, Joseph P. Kaboski, Min Qiang Zhao

NBER Working Paper No. 19372
Issued in August 2013
NBER Program(s):The Development Economics Program, The Economic Fluctuations and Growth Program, The Labor Studies Program

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.

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Document Object Identifier (DOI): 10.3386/w19372

Published: 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.

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