Publication Date


Document Type


Degree Name

M.A. (Master of Arts)

Legacy Department

Department of Economics


Employment stabilization; Income; Service industries


The term "Services” as defined in this study covers service industries which are the followingi lodging and hotel, personal, miscellaneous business, educational, medical, recreational, automotive repair, miscellaneous repair, private domestic, motion picture, and miscellaneous. Between 1919 and 1960, employment in Service estab- lishments increased by over 200 per cent» and Service em- ployment is predicted to increase by 60 per cent between 1960 and 1975. What effect might this growth have upon employment stability and income inequality of the economy? Services contribute to employment stability through* lower unemployment and layoff rates, a port of entry for people with low skill levels, a history of significantly less employment decline in the Depression and of employment growth during three post-War recessions. The wage level of Services is about three-quarters of All Private Industry. There does not exist in Services that potent combination of great concentration, high profits (except in some smaller establishments), and extensive unionization. Services have a high percentage of women and Negroes. These may have an inhibiting effect upon wage increases if these people act as wage-cutters. Service industry employees are characterized by short tenure records, relatively low educational levels, influxes of young workers, high quit-rates, much part-time work, and many small establishments. Measurement of productivity in Services is rather difficult and a subject of considerable debate. The relative wage differentials between Services and All Private Industries have not tended to narrow over the long-run. This phenomenon plus Service employment growth tend to produce more income inequality.


Includes bibliographical references.||Includes illustrations.


94 pages




Northern Illinois University

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