Shifting labor to service sector reduces economic volatility in OECD countries
The study shows that when more people work in the service sector instead of agriculture or manufacturing, the economy is less likely to have big ups and downs. This is because jobs in services are more stable than in other sectors. By looking at data from OECD countries, the researchers found that as countries shifted towards more service jobs from 1970 to 2006, the economy became less volatile. This means that structural changes in the types of jobs people have can help make the economy more stable over time.