Return of the Solow Paradox? IT, Productivity, and Employment in US Manufacturing
- (pp. 394-99)
AbstractAn 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.
CitationAcemoglu, 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
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- L60 Industry Studies: Manufacturing: General
- O33 Technological Change: Choices and Consequences; Diffusion Processes