Does tertiarisation slow down productivity growth? A Kaldorian–Baumolian analysis across 10 developed economies

This study examines the impact of expansion service sector on labour productivity growth in 10 developed economies, reaching back to late 1970s. The main research novelty is that it combines both Kaldorian and Baumolian insights develop a new shift-share decomposition that, consistent with theory, endogenises at industry level respect structural change, and, framework, includes arises from cumulative reallocation nominal output employment. Our results show tertiarisation leads gradual decrease most these economies.