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

Francisco Buera (), Joseph Kaboski and Min Qiang (Kent) Zhao

No 19372, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: J11 J22 O14 O33 O4 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-lab and nep-lma
Note: DEV EFG LS
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Published as 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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