Service economy

An economy in which services account for the dominant share of production and employment, rather than agriculture or manufacturing.

Service sector: The part of an economy that produces services rather than tangible goods. It is the sector whose expansion makes an economy service-dominated.
Industrialization: The expansion of machine-based manufacturing and factory production in an economy. Service economies emerge in part through transformation beyond industrial dominance.
Outsourcing: The contracting of work to an external organization rather than performing it within the contracting organization. Firms increasingly outsource specialized services that once remained in-house.
Agrarian economy: An economy in which agriculture is the principal source of production and employment. It represents an earlier production structure in which services are not dominant.
Labor market polarization: The growth of high- and low-wage jobs alongside a shrinking share of middle-wage employment. Service employment can expand at both ends of the wage and skill distribution.
Structural transformation: The long-term shift of production and employment among agriculture, industry, and services as economies develop. It describes the movement of workers and output toward services.
Deindustrialization: A decline in manufacturing's share of employment or output within an economy. It often accompanies the rise of services, though the two processes are not identical.
Business process outsourcing: The contracting of business functions such as payroll, customer support, or data processing to outside providers. It is a prominent way service work is organized across firms and borders.
Industrial economy: An economy in which manufacturing and industrial production dominate output and employment. It contrasts with service dominance in the composition of jobs and production.
Wage inequality: The uneven distribution of wages among workers in an economy. Differences between highly paid professional services and low-paid personal services can widen wage gaps.

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