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1. 1. Baumol’s Cost Disease in the Second Machine Age

   University essay from Lunds universitet/Nationalekonomiska institutionen

   Author : Erik Nelsson; [2019]
   Keywords : unbalanced growth computerization digitization employment; Business and Economics;

   Abstract : Baumol argued that technologically stagnant sectors with relatively low productivity growth over time will experience relatively higher prices and increased shares of total labor, and thereby slow aggregate growth. This theory, known as ‘the cost disease’, also claims that services, predominantly found in the public sector, generally are stagnant due to their perceived dependence on human labor as an input. READ MORE