Equality, Employment, and Budgetary Restraint: the Trilemma of the Service Economy
Author(s)
Iversen, Torben; Wren, Anne
Abstract
The economy after the industrial revolution was examined using a political economy point of view. A class of specific distributional trade-offs was found which is related to the new function of the services industries as the main source of employment growth. The three main policy objectives of budgetary limitations, wage equality and the expansion of employment form a political trilemma that permits the successful attainment of only two of the goals at the same time.
