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The Growth Of Service Industries In California 1960-1980, Ayalew Adamu, James G. Strathman

Center for Urban Studies Publications and Reports

This paper investigates structural changes in the service economy in California between 1960 and 1980. The service sector is disaggregated into four segments - distributive, business, personal and social - and a model is developed and estimated relating the relative growth of employment in services to changes in economic, demographic and urbanization factors. Substitution and complementary linkages among the service segments, and between these segments and manufacturing are also explored. Our results are consistent with the Fisher-Clark hypothesis, and the general importance of demographic and urbanization factors is also established. Variations in the influence of the determinants of structural change …