Return of the Solow Paradox? IT, Productivity, and Employment in US Manufacturing
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Author(s)
Acemoglu, Daron
Price, Brendan
Autor, David H.
Dorn, David
Hanson, Gordon H.
Price, Brendan Michael
Date Issued
May 2014
Journal
American Economic Review
Publisher
American Economic Association
Citation
Acemoglu, Daron, David Autor, David Dorn, Gordon H. Hanson, and Brendan Price. “ Return of the Solow Paradox? IT, Productivity, and Employment in US Manufacturing † .” American Economic Review 104, no. 5 (May 2014): 394–399.
Version
Final published version
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.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1257/aer.104.5.394
