Producer Services, Productivity, And Metropolitan Income
Niles Hansen
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Niles Hansen: University of Texas at Austin
The Review of Regional Studies, 1993, vol. 23, issue 3, 255-264
Abstract:
It is frequently argued that significant productivity increases require a strong and expanding manufacturing sector, and that the rapid growth of the services sector has been a drag on productivity. It is argued here that in an increasingly information-oriented economy, producer services-whether performed within manufacturing firms or by independent, specialized enterprises-play a pivotal role in expanding the division of labor, which in turn generates greater productivity and increasing incomes. The study utilizes data from the 1987 economic censuses. The results confirm and reinforce earlier evidence that the density of metropolitan producer services has a highly significant and positive association with per capita metropolitan income (as well as per capita metropolitan earnings), even when the relationship is controlled for level of education and for metropolitan population size, each of which also makes a positive and significant contribution.
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:rre:publsh:v23:y:1993:i:3:p:255-264
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