You would measure productivity, in terms of service, by the number of people a service worker can serve. But it is entirely possible to measure it in the quality of service provided too. But since quality is a largely subjective concept, how do you really know what part of income increases are due to quality improvements and what part are due to productivity improvements in the non-service part of the economy?
You can probably find a few professions where it is not easy to define the "output," and therefore is not easy to define "productivity." But they are not going to form a major component of any sustainable economic structure.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.