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Professional services delivery changes with firm growth in the US

Edouard Ribes ()
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Edouard Ribes: CERNA i3 - Centre d'économie industrielle i3 - CNRS - Centre National de la Recherche Scientifique - PSL - PSL Research University - MINES ParisTech - École nationale supérieure des mines de Paris

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Abstract: The delivery model of professional services firms is evolving because of trade and technology opportunities. Using a task based framework, it can be estimated that 22% of the content of professional services occupations can either be displaced or replaced. Both opportunities could each impact between 10 to 12% of the overall labor landscape. However those numbers must be nuanced and embedded in a context of firm growth. This paper therefore proposes a growth blueprint for professional services firms where trade and technology opportunities can be seized in phases depending in firms' size. This notably stresses the difference between small and large firms. Finally this service delivery model blueprint is used to discuss the overall occupational wage landscape evolution. This paper draws on the US firm size landscape and the existing wage literature to suggest that trade and technology will affect all jobs and increase the wage structure polarization of the US PSFs sector.

Keywords: Trade; Technological change; Firm growth; Professional services; and phrases Trade; Professional services * CERNA; Mines ParisTech; France (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2018-10-30
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