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Service labour market: The engine of growth and inequality

Lopez Cermeno, Alexandra LU (2015) In VOXEU
Abstract
Economic historians tend to explain US geographical development gaps in terms of industrialisation. But by the end of the 20th century, the richest counties had become specialised in services, rather than in manufacturing. This column evaluates how the service economy triggered this evident contrast between the urban and rural US. Market size causes localisation of non-agricultural activity, with the effect being stronger for services, especially knowledge services. Local policymakers can thus foster growth by attracting high-skilled workers to a region, with the multiplier effect eventually increasing the local market.
Please use this url to cite or link to this publication:
author
publishing date
type
Contribution to specialist publication or newspaper
publication status
published
subject
keywords
Services, inequality, localisation
categories
Popular Science
in
VOXEU
language
English
LU publication?
no
id
4eef8a64-8550-464c-a06b-ce4fb574e1ed
date added to LUP
2018-05-07 10:39:53
date last changed
2018-05-29 09:34:16
@article{4eef8a64-8550-464c-a06b-ce4fb574e1ed,
  abstract     = {Economic historians tend to explain US geographical development gaps in terms of industrialisation. But by the end of the 20th century, the richest counties had become specialised in services, rather than in manufacturing. This column evaluates how the service economy triggered this evident contrast between the urban and rural US. Market size causes localisation of non-agricultural activity, with the effect being stronger for services, especially knowledge services. Local policymakers can thus foster growth by attracting high-skilled workers to a region, with the multiplier effect eventually increasing the local market.},
  author       = {Lopez Cermeno, Alexandra},
  keyword      = {Services,inequality,localisation},
  language     = {eng},
  month        = {07},
  series       = {VOXEU},
  title        = {Service labour market: The engine of growth and inequality},
  year         = {2015},
}