@TechReport{iza:izadps:dp964, author={Schettkat, Ronald and Yocarini, Lara}, title={The Shift to Services: A Review of the Literature}, year={2003}, month={Dec}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={964}, url={https://www.iza.org/index.php/publications/dp964}, abstract={The present paper provides an overview of literature on the shift to services. It follows the three dimensions of structural change - final demand, the inter-industry division of labor and inter-industry productivity differences. It first looks at the ‘classics’, however (Fisher (1935), Clark (1940), Fourastié (1949), Baumol (1967, 2001), and Fuchs (1968)). Next, it treats studies analyzing differences in service-industry employment, and offers a discussion of studies focussing on final demand as an explanation of higher service shares in GDP. It also provides an overview of studies analyzing the inter-industry division of labor on the basis of input-output data. Finally, it discusses studies following Baumol’s cost-disease hypothesis.}, keywords={economic development;service industries;structural economic change;productivity;employment}, }