America top destinations for According to William Baumol, personal (though not necessarily business) services suffer from a cost disease or an unbalanced productivity growth. Due to the essentially personal and labor-intensive nature of services that admit of little or no mechanization, productivity tends to lag behind the manufacturing sector, and costs in service businesses are bound to rise over time. Baumol argued that this has three consequences: 1. Relative prices in industries with low productivity growth (such as healthcare, legal advice and law enforcement, social work, food service, or sanitation) will rise faster than prices in high-productivity industries 2. Relative employment will rise faster in industries with lower productivity growth 3. Overall productivity growth will fall as the labor force is shifted to low-productivity industries, given constant shares of output. This model would explain why employment growth in the advanced economies has, over the recent decades, been almost exclusively in the service sector while nominal wages have fallen behind those in manufacturing and services at the same time take up growing shares of economic output. America top destinations 2016.