American Economic Review: Vol. 104 No. 5 (May 2014)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Return of the Solow Paradox? IT, Productivity, and Employment in US Manufacturing

Article Citation

Acemoglu, Daron, David Autor, David Dorn, Gordon H. Hanson, and Brendan Price. 2014. "Return of the Solow Paradox? IT, Productivity, and Employment in US Manufacturing." American Economic Review, 104(5): 394-99.

DOI: 10.1257/aer.104.5.394

Abstract

An increasingly influential "technological-discontinuity" paradigm suggests that IT-induced technological changes are rapidly raising productivity while making workers redundant. This paper explores the evidence for this view among the IT-using US manufacturing industries. There is some limited support for more rapid productivity growth in IT-intensive industries depending on the exact measures, though not since the late 1990s. Most challenging to this paradigm, and to our expectations, is that output contracts in IT-intensive industries relative to the rest of manufacturing. Productivity increases, when detectable, result from the even faster declines in employment.

Article Full-Text Access

Full-text Article

Additional Materials

Online Appendix (795.02 KB) | Download Data Set (5.97 MB) | Author Disclosure Statement(s) (501.50 KB)

Authors

Acemoglu, Daron (MIT and CIFAR, Toronto)
Autor, David (MIT)
Dorn, David (CEMFI, Madrid and IZA Bonn)
Hanson, Gordon H. (U CA, San Diego)
Price, Brendan (MIT)

JEL Classifications

J24: Human Capital; Skills; Occupational Choice; Labor Productivity
L60: Industry Studies: Manufacturing: General
O33: Technological Change: Choices and Consequences; Diffusion Processes


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us