Abstract

Some economists have been concerned with the phenomenon of rapid and growing service sector employment and output in the United States. De-industrialisation has been viewed as a threat to the long-term viability of the economy. This paper provides a rebuttal to these views and examines the various definitions of the services that are being measured. The analysis concludes that it is producer services that are on the increase; these are intermediate services provided to businesses that reflect increasing specialisation within the labour force.

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