Are Service-Sector Jobs Inferior?
In recent years, U.S. service-producing industries have, on net, added jobs more rapidly than the goods-producing industries. Since the end of 1990, jobs in the service-producing sector have increased 4.1 percent overall, while goodsproducing employment has shrunk 5.6 percent. During the same period, total nonfarm employment has risen 1.9 percent. A number of commentators have used these basic statistics to paint a bleak picture: The economy is creating some new jobs and employing a few more people, but only in low-wage service positions; meanwhile, the old high-wage manufacturing jobs are disappearing.
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Dupuy, Max, and Mark E. Schweitzer. 1994. “Are Service-Sector Jobs Inferior?” Federal Reserve Bank of Cleveland, Economic Commentary 2/1/1994. https://doi.org/10.26509/frbc-ec-19940201