Three-sector model

**Three-Sector Model by Fourastié:**
– Structural transformation with workforce quotas in primary, secondary, and tertiary sectors.
– Fourastié’s optimistic perspective on societal progress through sector shifts.
– Transition from traditional civilizations to a tertiary civilization.
– Impact of machinery deployment on sector workforce distribution.
– Development and dominance of the tertiary sector in advanced economies.

**Criticism and Extensions to Fourastié’s Model:**
– Empirical studies revealing discrepancies in employment proportions.
– Incorrect predictions by Fourastié regarding sector transitions.
– Technological advancements affecting sector shifts differently than predicted.
– Contradictions in income equality trends with Fourastié’s forecast.
– Proposal to expand the model to include the information sector for accuracy.
– Evolution towards a service or post-industrial society.
– Growth of the service sector leading to the emergence of quaternary and quinary sectors.

**Quaternary Sector:**
– Also known as the research and development sector.
– Comprised of businesses offering information services and intellectual activities.
– Focus on knowledge-based activities for future growth.
– Activities include scientific research, ICT/computing, and education.
– Difficulty in measuring output but rapid growth in recent times.

**Quinary Sector Potential:**
– Opportunity for further development and understanding in human services.
– Importance of expanding discussions around the quinary sector.
– Potential impact on societal progress and economic development.
– Exploration of the role of human services in the economy.

**Value Added and National Accounts:**
– Link between the three-sector model and national accounts developed by Colin Clark.
– Value added central to national accounting.
– Calculation of value added in secondary and tertiary sectors.
– Challenges in applying value added concept to quaternary and quinary sectors.