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

51 Pages Posted: 30 Aug 2013 Last revised: 7 Sep 2013

See all articles by Francisco J. Buera

Francisco J. Buera

Washington University in St. Louis; National Bureau of Economic Research (NBER)

Joseph P. Kaboski

Ohio State University (OSU) - Economics; National Bureau of Economic Research (NBER); University of Notre Dame - Department of Economics

Min Qiang Zhao

Xiamen University - Wang Yanan Institute for Studies in Economics (WISE)

Date Written: August 2013

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.

Suggested Citation

Buera, Francisco J. and Kaboski, Joseph P. and Zhao, Min Qiang, The Rise of Services: The Role of Skills, Scale, and Female Labor Supply (August 2013). NBER Working Paper No. w19372. Available at SSRN: https://ssrn.com/abstract=2318275

Francisco J. Buera (Contact Author)

Washington University in St. Louis ( email )

One Brookings Drive
Campus Box 1208
Saint Louis, MO MO 63130-4899
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Joseph P. Kaboski

Ohio State University (OSU) - Economics ( email )

410 Arps Hall
1945 N. High St.
Columbus, OH 43210-1172
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of Notre Dame - Department of Economics ( email )

Notre Dame, IN 46556
United States

Min Qiang Zhao

Xiamen University - Wang Yanan Institute for Studies in Economics (WISE) ( email )

A202, Economics Building
Xiamen, Fujian 361005
China

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