Structural change in the developed countries during the twentieth century

The central theme of this paper is the process of structural change which occurred during the twentieth century in the leading industrial nations. The massive scale of the changes in all these countries is first illustrated by reference to the reallocation of the labour force between agriculture, industry, and the sen,ices, and the process of de-industrialization common to all these countries is highlighted. Alternative measures based on output data at current and constant prices are also considered. The paper then explores the main reasons for these shifts in the pattern of activity, looking at the interacting effects of demand- and supply-side factors. This is followed by an examination of some of the consequences of structural change, including the implications for the labour market and the overall growth of labour productivity. The final section speculates briefly about the likely implications for the less-developed countries following behind this advanced group.