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Data and Code for: Selection, Structural Transformation, and the Cost Disease of Services

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DataCite Commons2026-04-02 更新2026-05-03 收录
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Labor productivity growth in the service sector may be mismeasured if workers with heterogeneous skills self-select into sectors. I document with U.S. data that workers reallocated from manufacturing earn more than incumbent workers in professional services but less than incumbent workers in education, health, and public services. A generalized quantitative Roy model predicts a selection effect on labor productivity growth in professional services that is 10 percentage points higher than what a conventional selection model predicts. Overall, the selection effect contributes little to the cost disease of services, which contrasts sharply with the hypothesis in the literature.
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ICPSR - Interuniversity Consortium for Political and Social Research
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2026-04-02
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