Research Seminar Series on Global Challenges – Fabrizio Zilibotti (Yale), 5th May 2022 at 2.00 p.m. (CET)

Global Challenges Seminar Series

Fabrizio Zilibotti (Yale) on Growing Like India: The Unequal Effects of Service-Led Growth (with Tianyu Fan and Michael Peters), jointly organised by the Centro Studi Luca d’Agliano, BAFFI CAREFIN and the Department of Economics, Management and Quantitative Methods (University of Milan) in collaboration with the Dipartimento di Economia, Metodi Quantitativi e Strategie di Impresa (Università Milano Bicocca) and the Dipartimento di Ingegneria Gestionale (Politecnico di Milano) and the Department of Economics (University of Insubria).

The seminar will be held on Thursday, 5th May 2022 at 2:00 p.m. (CET) in a hybrid format:

– DEMM seminar room, Via Conservatorio 7, 2nd floor. According to the current COVID measures, the seminar room can accommodate 20 people.

– Via Zoom. Please register by email to


We construct a spatial equilibrium model where agents have nonhomothetic preferences over final goods that differ in the intensity of use of consumer services as production inputs. Over time, the expansion of employment in consumer services is both a consequence (income effects) and a cause (productivity growth) of the development process. We estimate the model using household data from the Indian NSS exploiting granular information on sectoral employment at the district level and individual data for consumption expenditure. We find that productivity growth in consumer services was an important driver of rising living standards between 1987 and 2011 accounting for 1/3 of aggregate welfare gains. However, these gains are heavily skewed toward high-income households living in cities, because such individuals spend a large share of their budget on consumer service intensive goods. Productivity growth in the service sector is also a powerful driver of the process of structural change shifting employment out of agriculture into the service sector with only limited industrialization.

Read the paper here!