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Why Services Need an Industrial Policy

Enhancing productivity in services is notoriously difficult, and it is often impeded by a myriad of well-meaning licensing, safety, and other regulations. But if policymakers are serious about increasing the supply of good jobs for less-educated workers, services are where they must direct their efforts.

CAMBRIDGE – Good jobs have become a top priority worldwide. Policymakers in advanced and developing economies alike are stressing the need for well-paying employment opportunities with job security and career ladders. Globalization and technological change have made it painfully clear that this task cannot be left wholly to markets.