The Productivity Paradox: Evidence from Indirect Indicators of Service Sector Productivity Growth

Abstract

Whereas difficulties in measuring the output of service sectors have been well documented, input measures are reasonably accurate. Using U.S. input-output data for the period 1958-87 and a number of indices of skill and occupational change derived from the Dictionary of Occupational Titles and decennial census data covering the period 1960-1990, I find strong evidenec that among all industries in the economy industry productivity growth is positively related to R&D intensity and knowledge spillovers from other industries but negatively related to major restructuring of technology. (This abstract was borrowed from another version of this item.)