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Wedded to outdated ideas about the importance of manufacturing, economists of all stripes have usually given short shrift to the service sector. When they did pay it attention, it was often to conjure up derisive images of unskilled, low-wage armies of “burger flippers” and supermarket clerks. This was always wrong. It is now dangerous. The conventional wisdom about services is seriously in error.
Though some may have doubted it, the US led the world in service sector productivity in the early 1990s. MGI discovered that variations in productivity across countries and sectors resulted from how managers responded to the intensity of competition they faced. Though some may have doubted it, the US led the world in service sector productivity in the early 1990s.
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