Serrano Quintero, Rafael2023-09-212023-09-212023https://hdl.handle.net/2445/202190Contrary to the experience of industrialized countries, productivity growth of Indian services has been consistently faster than manufacturing. In this paper, I document that (i) the fastest growing industries in services grow faster than in manufacturing; (ii) faster productivity growth in services than in manufacturing is not because of sluggish manufacturing productivity; (iii) the supply of skilled workers in India is skewed towards tertiary education and (iv) the service sector is the most skill intensive; (v) returns to schooling are larger for the high-productivity services. To quantify and rationalize these facts, I construct a multi-sector model of estructural change with high and low-skilled workers. The calibrated model suggests that the large supply of high-skill workers combined with higher skill intensity in the service sector seem to be behind the services take-off. The data imply that service sub-sectors are gross substitutes while manufacturing sub-sectors are gross complements. This will accelerate productivity growth in services and decelerate productivity growth in manufacturing.68 p.application/pdfengcc-by-nc-nd, (c) Serrano Quintero., 2023http://creativecommons.org/licenses/by-nc-nd/3.0/es/Productivitat laboralRecursos humansCompetències professionalsÍndiaLabor productivityCapital humainVocational qualificationsIndiainfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccess