Structural change in the developed countries during the twentieth century

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