https://doi.org/10.7892/boris.69523 | downloaded: 1.2.2022
Expansion of the Service Sector
A Comparison of the Labor Markets in the USA, West Germany and Switzerland
Andreas Diekmann Henriette Engelhardt
Ben Jann
Two main questions:
Does the assertion of the “gap in service sector”
between the USA and European countries like Germany or Switzerland still hold true?
Is there any evidence for an increase in earnings inequality due to a polarization into low-paying and high-paying service jobs in the 1990s?
1960 1965 1970 1975 1980 1985 1990 1995 2000 0
10 20 30 40 50 60 70 80 90 100
Service Sector and Unemployment Rates
USA CHD
Proportion of Service Sector (employees in %, thick lines)
0 5 10 15 20 25 30 35 40 45 50 Unemployment Rate (in %, thin lines)
Proportion of the Service Sector in Switzerland (percentage of employees)
67.2
78.8 83.1
90.2
0 20 40 60 80 100
by economic branch of
by occupations by job activities by self- assignment
Proportion of Service Sector (1997) USA D CH By economic branch of employer 74.2 62.7 70.0
By occupations 76.5 75.0 74.8
Change 1992–1999 (D: 1993–1997) +0.7 +2.0 +1.5
– administration services 11.6 17.7 16.7
– organizational services 10.8 4.7 4.0
– services close to production 10.0 9.6 13.0
– distribution services 16.5 16.0 13.0
– consumption related services 12.7 11.7 11.2
– social services 13.1 13.4 15.3
– public services 1.7 1.8 1.0
– services n.e.c. – – 0.6
Proportion of simple services 14.4 – 16.1
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Lorenz Curves of Hourly Wages (within service occupations)
Proportion of Employees
Proportion of Sum of Wages
USA CH
19921999
USA Switzerland 1992 1999 1992 1999 Gini ( 1000)
– agr./indust. occs 286 275 197 183 – service occs 327 337 276 250
– all occs 320 326 263 242
Rates of Return to Education in % (male employees)
9.8
10.6
7.1 6.4
10.4 11.1
7.1 6.4
0 2 4 6 8 10 12
all occupations service occs all occupations service occs 1992 1999
USA Switzerland
Economic Sectors by Occupational Domains (1993) Occupations
agricult. industrial services total USA
I. Sector 83 3 14 100
II. Sector 0 58 42 100
III. Sector 0 11 89 100
D
I. Sector 84 1 16 100
II. Sector 0 57 43 100
III. Sector 0 5 95 100
CH
I. Sector 89 3 8 100
II. Sector 0 55 45 100
III. Sector 1 10 90 100
Occupational domains USA CH
1992 1999 1992 1999
Agricultural occupations 2.5 2.3 4.8 5.7
Industrial occupations 21.1 20.6 21.5 19.2
Service occupations 76.4 77.1 73.7 75.2
– administration services 13.7 11.3 18.8 15.8 – organizational services 9.4 11.0 3.8 4.4 – services close to production 9.8 10.4 13.3 13.6 – distribution services 16.4 16.4 11.7 12.5 – consumption related services 13.0 12.8 10.7 10.8
– social services 12.3 13.3 14.4 16.5
– public services 1.8 1.9 0.7 1.1
– services n.e.c. – – 0.3 0.5
Total 100.0 100.0 100.0 100.0
