The Industrial Revolution in Services: Is Big Business Driving Economic Growth?
Join the Becker Friedman Institute for Economics (BFI), the Chicago Economics Society (CES), and the Washington DC Chicago Booth Alumni Club for a conversation with Chicago Booth’s Chang-Tai Hsieh about the industrial revolution in services.
Join the Becker Friedman Institute for Economics (BFI), the Chicago Economics Society (CES), and the Washington DC Chicago Booth Alumni Club for a conversation with Chicago Booth’s Chang-Tai Hsieh, Phyllis and Irwin Winkelried Professor of Economics, who will share his latest research on the industrial revolution in services. Idress Kahloon, US Policy Correspondent for The Economist, will moderate the discussion.
Hsieh and his co-author find that there has been a significant rise in national industry concentration in three sectors of the economy: services, retail, and wholesale. These sectors have increased their share of employment by expanding into local markets but have also become increasingly specialized. As a result, top US firms today have a larger share of the national market in their chosen industries but on the whole, they have a smaller share of each local market because they are doing fewer things. As a result, these firms have not grown as a share of the aggregate economy.
These findings are in contrast to fears expressed in policy discussions over corporate consolidation and the need to break up big firms. Hsieh argues that the concentration of national market share by top firms in the service and retail industry has actually provided competition to local firms; they find that growth of the top firms in local services has been responsible for 80% of wage and employment growth in the US over the last four decades.
Read the research brief and recent Wall Street Journal op-ed on Hsieh’s work.
Learn more information and register here.
Visitors to IMF headquarters must present a photo identification and go through security screening to gain access to the building. Please plan for additional time to go through security. Please note that IMF Headquarters consists of two buildings, HQ1 and HQ2. To access HQ2, where the event will be held, please enter at the corner of 19th St and Pennsylvania Avenue.
5:30 pm - 6:00 pm: Cocktails and Networking
6:00 pm - 6:05 pm: Welcome and Introductions
6:05 pm - 6:15 pm: Presentation, Professor Chang-Tai Hsieh
6:15 pm - 6:50 pm: Moderated discussion, Professor Chang Tai-Hsieh and Idrees Kahloon
6:50 pm - 7:00 pm: Audience Q&A
Please note, visitors to IMF headquarters must present a photo ID and go through security screening to gain access to the building.