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Structural change and the growth contribution of services: how motion pictures industrialized US spectator entertainment

Bakker, Gerben (2007) Structural change and the growth contribution of services: how motion pictures industrialized US spectator entertainment. Economic History Working Papers, 104/07. Department of Economic History, London School of Economics and Political Science, London, UK.

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Abstract

This paper examines the effect of a new technology on a labour-intensive service. Comparing primal and dual TFP-growth with final-year social savings, we find that, between 1900 and 1938, motion pictures increased entertainment output (measured in spectator-hours) by at least nine percent annually, mainly through intensive growth. Falling profit margins indicate that motion pictures increased competition, while real wages rising twice the national average suggests labour captured part of the efficiency gains. Surviving live entertainment experienced some intensive growth, reached a similar capital/labour ratio but paid lower wages. These findings suggest that some services can experience similar productivity gains as manufacturing and that traditional service-activities survive the onslaught of new technologies by transforming their production structure.

Item Type: Monograph (Working Paper)
Official URL: http://www2.lse.ac.uk/economicHistory/workingPaper...
Additional Information: © 2007 Gerben Bakker
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
D History General and Old World > D History (General) > D204 Modern History
E History America > E151 United States (General)
P Language and Literature > PN Literature (General) > PN1993 Motion Pictures
Sets: Departments > Economic History
Departments > Accounting
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 104/07
Date Deposited: 29 Jan 2009 18:19
URL: http://eprints.lse.ac.uk/22314/

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