
Contents
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1. Introduction 1. Introduction
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2. The New Economic Environment 2. The New Economic Environment
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2.1 Deindustrialization and the ICT Revolution 2.1 Deindustrialization and the ICT Revolution
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2.2 Variations in the Characteristics of Service Production 2.2 Variations in the Characteristics of Service Production
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3. Supply- and Demand-Side Strategies for Employment Creation in Low Productivity Services Sectors 3. Supply- and Demand-Side Strategies for Employment Creation in Low Productivity Services Sectors
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4. Strategies for Growth in a Digitized Post-Industrial Economy 4. Strategies for Growth in a Digitized Post-Industrial Economy
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5. Dynamic Service Expansion and the Institutions of Skill Formation 5. Dynamic Service Expansion and the Institutions of Skill Formation
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5.1 The ICT Revolution and the Demand for High-Skilled Labor 5.1 The ICT Revolution and the Demand for High-Skilled Labor
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5.2 Cross-National Variation in Skills Policy: Sweden, Germany, and the UK Compared 5.2 Cross-National Variation in Skills Policy: Sweden, Germany, and the UK Compared
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5.3 The Impact of Changes in Skills Demand on Labor Markets: Sweden, Germany, and the UK Compared 5.3 The Impact of Changes in Skills Demand on Labor Markets: Sweden, Germany, and the UK Compared
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6. Conclusions 6. Conclusions
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References References
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8 Strategies for Growth and Employment Creation in a Services-Based Economy: Skill Formation, Equality, and the Welfare State
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Published:November 2020
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Abstract
This chapter focuses on the role of skill formation, wage-setting, and public service provision in shaping different national growth strategies in a post-industrial context, taking the cases of Germany, Sweden, and the UK as detailed examples and making use of data from the EU-KLEMS Growth and Productivity Accounts Database (2008). It highlights the role played by skills policy in shaping patterns of specialization in high productivity, traded sectors, which are important engines of growth even in “consumption-led” regimes. It shows that Sweden’s ability to compete in less price-sensitive, high-end services (and manufacturing) markets rests on the availability of a workforce with high levels of tertiary skills. Germany’s reliance on more traditional manufacturing sectors is rooted in its well-established system of firm-based vocational training and its limited tertiary sector. In the UK, the expansion of domestic demand has, in part, been debt-driven, although it has also, as in the Swedish case, been facilitated by rising real wages. Nevertheless, a key driver of rising real wages in the UK has also been productivity growth and the expansion of trade in high-end, ICT-intensive services. The chapter confirms that welfare state policies (including the protection of relative wages, public service provision, and, above all, strategies of skill formation) are critical to the outcomes observed in the context of deindustrialization and technological change. The development of sustainable strategies for growth and employment creation in a context of deindustrialization, and of revolutionary changes in ICT, rely on the creation of a capacity to expand into ICT-intensive, high value-added sectors, and especially in dynamic services sectors.
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