Tyler Cowan has an interesting summary of a recent book on the loss of manufacturing labour in the USA bq. The notion of “regression toward a mean” describes the manufacturing sector better than the universal downsizing hypothesis (Baumol, Blinder & Wolff via “Marginal Revolution”:http://marginalrevolution.blogs.com/) Does this idea apply to services ‘outsourcing'[⇒ related story] as well?
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