Do the Earninfls of Manufacturing and Service Workers Grow at the Same Rate Over Their Careers?

The U.S. labor market has undergone dramatic structural changes over the last several decades. Total employment has increased by 37 percent since 1976, but most of this growth has been concentrated disproportionately in the serviceproducing sectors. For instance, service employment (SICs 70 through 89) has increased 80 percent since 1976, while manufacturing employment (SICs 20 through 39) has increased only 5 percent.' This uneven growth across sectors has resulted in a significant change in the industrial composition of the labor force. Twelve years ago, manufacturing claimed 24 percent of total employment while the services comprised 18 percent. Today, those roles have been completely reversed with the service sectors claiming 24 percent of total employment and manufacturing claiming 18 percent.