Abstract

In the last 50 years, the share of employment in manufacturing has declined in the United States. The main reason for this phenomenon is labor-saving technological progress. Variation among state tax polices and international economic conditions have played only minor roles. The source of future prosperity will be technological advances in a service-oriented economy.

Disciplines

Economics

Publisher statement

The definitive version is available at http://www.clevelandfed.org/research/commentary/2004/#July04.

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Economics Commons

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URL: https://digitalcommons.calpoly.edu/econ_fac/65