Is Deindustrialization Causing High Unemployment in Affluent Countries? Evide…

This study assesses the possibility that deindustrialization has been contributing to the persistently high unemployment rates experienced by most affluent countries since the mid-1970s. Combining insights from Lilien’s (1982) “sectoral shift” thesis and the literature on deindustrialization, the authors assert that the decadeslong contraction of the manufacturing sector has been a signif…