Employment in tangible and intangible industries - methodology
As readers of this blog know, I have been publishing monthly employment data in an alternative framework (see most recent posting). That framework divides employment into jobs in tangible-producing industries (including tangible services) and jobs in intangible-producing industries.
Today I am releasing a working paper describing the methodology in greater detail. The analysis attempts to translate the existing goods & services dichotomy into tangible & intangible.
Tangible activities are primarily physical; intangible are primarily mental. Cutting hair, ringing up a sale at a cash register, making a car, harvesting a crop–all of these are primarily a physical activity. The transaction involves the movement of atoms. Designing a poster, negotiating a deal, writing an article–these are primarily mental involving the manipulation of information bits.
Intangible, mental activities are more important than ever in this information economy. But tangible, physical activities are just as important. Some of those physical activities are captured by the current classification system as part of construction, agriculture and manufacturing. And some of those mental activities are correctly classified as services. But only some. For example, the construction sector contains many mental activities such as architecture, engineering and logistical planning. The service sector contains physical activities, such as truck drivers, barbers and gardeners.
I plan to refine the methodology and continue to publish monthly updates.
Source: http://www.athenaalliance.org/weblog/archives/2015/07/employment-in-tangible-and-intangible-industries--.html
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