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The Service Productivity and Quality Challenge (International Studies in the Service Economy)

P.T. Harker




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 | #4504271 in eBooks |  1995-05-31 |  1899-12-31 | File type: PDF | PDF # 1

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3 While all of these explanations seem to have merit, there is one dominant reason why the percentage of GDP and employment dedicated to services has continued to increase: low productivity. According to Baumol's cost disease hypothesis (Baumol, Blackman, and Wolff 1991), the growth in services is actually an illusion. The fact is that service-sector productivity is improving slower than that of manufacturing and thus, it seems as if we are consuming more services in nom...

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