scholarly journals Automation and sectoral reallocation

SERIEs ◽  
2021 ◽  
Author(s):  
Dennis C. Hutschenreiter ◽  
Tommaso Santini ◽  
Eugenia Vella

AbstractEmpirical evidence in Dauth et al. (J Eur Econ Assoc, 2021) suggests that industrial robot adoption in Germany has led to a sectoral reallocation of employment from manufacturing to services, leaving total employment unaffected. We rationalize this evidence through the lens of a general equilibrium model with two sectors, matching frictions and endogenous participation. Automation induces firms to create fewer vacancies and job seekers to search less in the automatable sector (manufacturing). The service sector expands due to the sectoral complementarity in the production of the final good and a positive wealth effect for the household. Analysis across steady states shows that the reduction in manufacturing employment can be offset by the increase in service employment. The model can also replicate the magnitude of the decline in the ratio of manufacturing employment to service employment in Germany between 1994 and 2014.

2015 ◽  
Vol 10 (3) ◽  
pp. 191-207
Author(s):  
Walentyna Kwiatkowska

The role of the service sector in the economy is increasing in the process of socio-economic development. This tendency has been confirmed and explained by the three-sector theory formulated by A.G.B. Fisher, C. Clark, and J. Fourastie. The main goal of the paper is to show development tendencies in service sectors in Poland and the EU countries and assess them in view of the three-sector theory. The share of the service sector in the total employment and in the total gross value added in the years 2005-2013/2014 will be analysed together with two sub-sectors including market and non-market services. The research shows that the share of the service sector in total employment and total gross value added has been recently increasing in Poland as well as in other EU countries, but there is a gap in this process between Poland and the most developed EU countries. Moreover, in Poland, the role of market services has been recently increasing much faster than the role of non-market services. 


2008 ◽  
Vol 33 (3) ◽  
pp. 433-466 ◽  
Author(s):  
Fiona Tregenna

Abstract Deindustrialisation is typically conceptualised as a decline in manufacturing as a share of total employment. From a Kaldorian perspective deindustrialisation could have negative implications for long-run growth, given the special growth-pulling properties of manufacturing. However, defining deindustrialisation purely in terms of employment share is conceptually limiting given that some of the Kaldorian processes operate primarily through output rather than employment, as well as blunting empirical analysis by not focussing enough on changes in manufacturing share of gross domestic product (GDP). This study develops a new method using decomposition techniques to analyse changes in manufacturing employment levels and shares in 48 countries over periods of ‘deindustrialisation’. The analysis separates out changes in the levels and shares of employment manufacturing into components associated with changes in the share of manufacturing in GDP, the growth of manufacturing value-added, the labour intensity of manufacturing production and economic growth. The results indicate that in most cases the decline in manufacturing employment is associated primarily with falling labour intensity of manufacturing rather than an overall decline in the size or share of the manufacturing sector. We suggest that deindustrialisation should appropriately be defined in terms of a sustained decline in both the share of manufacturing in total employment and the share of manufacturing in GDP.


2020 ◽  
Vol 11 (2) ◽  
pp. 281
Author(s):  
Intan Shaferi ◽  
Sugeng Wahyudi ◽  
Wisnu Mawardi ◽  
Riskin Hidayat ◽  
Intan Puspitasari

The purpose of this research is to examine the leverage from firm. The firms use leverage to expand their source of fund by using external fund such as debt. By usingdebt, financial performance of the firm will develop. Beside the leverage, the use of size and inflation are also considered to be the factors that influence the financial performance while the firms are using leverage. As an independent variable, size is reflected by the assets and the leverage or debt by using the debt ratio to the total of assets. Then,the financial performance is reflected by using the return on the measured assets. Inflation as a control variable is included in this research to know the effect towards the financial performance. In this research, firms are divided into two sectors, there are manufacture and service sector. By using the manufacture and service sectors in order to know each effect of leverage toward the financial performance, this research focuses to the unique characteristic of these two sectors. Knowing which sector is influenced more by the leverage than the others, will guide the urgency of this research. This research used the pooled data regression method, 468 data entries of 156 listed firms in Indonesian Stock Exchange. This research was conducted from 2015 until 2017. The result shows that leverage significantly has a negative effect towardthe financial performance and the size positively influences financial performance. Manufacture sector is influenced more in leverage towardsthe financial performance, and the service sector is influenced more on size towardsthe financial performance.


2010 ◽  
Vol 15 (2) ◽  
pp. 240-264 ◽  
Author(s):  
Rahşan Akbulut

Throughout the second half of the 20th century, women in the United States decided to move increasingly into the labor market. This paper investigates the growth of the service sector as an explanation for the increase in women's employment. It develops an economic model that can account for the increase in women's employment and the growth of the service sector at the same time. A growth model with two sectors and a home production technology is constructed in order to quantitatively assess the contribution of sectoral productivity differences to the change in women's employment decision. The sectoral productivities are taken from the data. This model demonstrates that a higher rate of productivity growth in market services compared to home services can account for a large fraction of the observed increase in women's labor supply from 1950 to 2005.


2018 ◽  
Vol 16 (2) ◽  
pp. 42-48 ◽  
Author(s):  
Anton Kvitka ◽  
Anna Kramarenko

The article considers changes in organizational structure (in the context of a shift in favor of small business), the main factors and long-term prospects of these changes. Enhancing the role of small and medium-sized enterprises (SMEs) in many countries of the world is described. The concept of SMEs, as well as the range of indicators measuring organizational structure, is defined. Modern trends that indicate the increasing role of small and medium-sized enterprises are shown. On the basis of dynamics of economic indicators in Europe and the United States, the increasing role of small and medium enterprises is investigated. It is shown that the increase in the share of the service sector is the result of market saturation. The influence of the service sector on the shifts in the organizational structure in the period of global economic changes, as well as the influence on the increasing share of more flexible and innovative small and medium-sized enterprises in total employment and income, is argued. Increased competition in the process of saturation of the market is shown as one of the factors of the development of personal needs that promote individual entrepreneurs, inventors and innovators, for whom a complex and rigid structure of large organizations is the factor which limits the growth and interferes with their becoming the engines of scientific and technological progress. It is proved that in conditions when large corporations find themselves unable to identify a new micro niche quickly, small and medium enterprises are becoming the most convenient form for the realization and promotion of innovation. The transition from the dominance of large corporations to the dominance of SMEs in the process of substitution of technological modes is investigated. The increasing role of small and medium firms in the context of long-term trends of economic development is considered.


Subject Labour shortages in China. Significance Companies in coastal China have been reporting recurring labour shortages for the past decade. However, the ratio of job vacancies to job seekers is even greater in low-tier cities and in western and central China. Impacts Training the young with market-relevant skills is crucial to increasing labour productivity as China moves up the value-added chain. A focus on vocational training will help address the education mismatch, but the education it offers is of low quality. Poor working conditions in service sector jobs will create a growing labour unrest problem in these sectors unless addressed.


2007 ◽  
Vol 51 (1) ◽  
Author(s):  
Ronald Noppe ◽  
Dieter Plehwe

Labour market development in the logistics sector. Importance, dynamics and (de-)regulation of the distribution economy. Deregulation and innovation in commercial and industrial transportation, warehousing and distribution led to the rise of a modern logistics sector. Both for Germany and the US scholars have argued that expanding logistics services help to compensate for the decline in manufacturing employment. An examination of national employment statistics to the contrary shows logistics employment to be in absolute (Germany) or relative (US) decline. While the share of logistics jobs requiring higher qualifications seems to increase in both countries, many lower skilled activities seem to be subject to productivity increase and/or (international) relocation. If dynamics in the logistic sector contribute to the decline of manufacturing employment in various ways, employment in this sector overall does not contribute to the rising share of employment in the service sector.


2002 ◽  
Vol 8 (3) ◽  
pp. 377-391 ◽  
Author(s):  
Dominique Anxo ◽  
Donald Storrie

This article analyses the drivers of and barriers to service employment growth and reviews available policy options. Commending development of the industry-service nexus, skills, and facilitation of female employment, the authors also suggest measures to support labour mobility and to enhance the tradability of services within the single European market, which may stir controversy among trade unionists.


2009 ◽  
Vol 53 (2) ◽  
pp. 214-238
Author(s):  
Dipak Mazumdar

Abstract The article investigates the working of a model of an urban labor market in LDG's which has two sectors—one sector (the U-sector) being characterized by ease of entry, variable hours of work and flexible earnings, the other (the O-sector), by rigid wages maintained at a relatively high level. Migrants from the rural areas respond to the expected earnings in both sectors, and can search for O-sector jobs while participating in the U-sector. Labor supply determined by such a migration function, together with the relative rates of growth of income in the two urban sub-sectors (on plausible assumptions) lead to the possibility that average earnings in the U-sector decline over time relative not only to O-sector wage, but also to the alternative income in the rural sector. In the last section a distinction made between two types of job seekers found in the U-sector—those with and those without an interest in the O-sector—gives the result that average earnings in the U-sector may sometimes be independent of conditions in the O-sector. It is also seen that, under certain conditions, even with ease of entry and variable hours of work, the U-sector may not serve as a channel for migrants seeking to enter the O-sector. The analysis provides a classification of labor market types which may be of help in organizing empirical information from different parts of the world.


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