The cost disease of the service sector in recent years is the result of

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The cost disease of the service sector refers to the fact that service industries such as healthcare, education, and entertainment have experienced an increase in costs despite relatively low productivity growth. This is due to the nature of these services which are labor-intensive and have limited opportunities for automation and technological advancements. As a result, the cost of providing these services has increased over time, leading to higher prices and/or decreased access. This is primarily the result of uneven productivity growth in the service sector.

The Cost Disease of the Service Sector in Recent Years