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Prof. William Baumol's "cost disease" theory is highlighted

globe and mail logo feature

Excerpt from The Globe and Mail -- "Baumol's cost disease – an economic theorem often proven empirically and named after the economist William Baumol – shows that wage gains always outstrip productivity improvements in the public sector. Baumol's cost disease poses a huge challenge for provincial governments, whose services – health, education, social services – are very labour-intensive."

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