What to make of the strategy of low wages in services?

Some countries, such as Germany, which we compare with France, have pursued a strategy of low wages in services. This strategy has: Some advantages: it facilitates the creation of services jobs and is therefore conducive to a return to full employment and to a rise in the employment rate; because there is a very high level of intermediate consumption of services by industry, it improves industry’s competitiveness; A drawback: the low level of wages in services increases poverty and inequality.