However, in real terms, we are consuming slightly less services. That is, the increase in the service sector is caused by low productivity relative to manufacturing. The implication of Baumol's cost disease is the following.
... 0792334477 . 104138 ICHNIOWSKI , CASEY & SHAW , KATHRYN & PRENNUSHI , GIOVANNA The Effects of Human Resource Management Practices on Productivity . National Bureau of Economic Research , Cambridge , MA . NBER Working Paper Series ...