Full Citation

Title: Productivity Growth in Goods and Services Across the Heterogeneous States of America

Citation Type: Journal Article

Publication Year: 2016

ISBN:

ISSN: 0095-2583

DOI: 10.1111/ecin.12256

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PMCID:

PMID:

Abstract: In this study, we examine the importance of multifactor productivity (MFP) growth in goods and services for U.S. States during 1980–2007 by applying the dual growth accounting framework. We find that MFP growth was relatively high and converged in the goods sector, but was low and did not converge in services. Although low growth in MFP in services was due to declining real user cost, particularly in real estate services,the lack of convergence itself was due to variation in wage growth. We also document that while the gap between productivity and wage growth was higher in goods, t he two series were more strongly correlated in services. Finally, states with higher initial human capital experienced higher growth in both sectors.

Url: https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecin.12256

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Authors: Chanda, Areendam; Panda, Bibhudutta

Periodical (Full): Economic Inquiry

Issue: 2

Volume: 54

Pages: 1021-1045

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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