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Productivity, investment in ICT and market experimentation: micro evidence from Germany und the US

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Author Info
Haltiwanger, John C.
Jarmin, Ron
Schank, Thorsten

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Abstract

This paper examines the relationship between the use of advanced technologies such as ICT, and outcomes such as productivity, the skill mix of the workforce and wages using micro data for the U.S. and Germany. We find support to the idea that U.S. businesses engage in experimentation in a variety of ways not matched by their German counterparts. In particular, there is greater experimentation amongst young U.S. businesses and also among those actively changing their technology. This is evidenced in a greater dispersion in productivity and related key business choices. We also find that the mean impact of adopting new technology on productivity and wages is greater the in U.S. than in Germany. -- Dieses Papier untersucht die Beziehung zwischen dem Einsatz neuer Technologien, wie von IKT, und betrieblichen Kenngrößen wie der Produktivität, der Qualifikationsstruktur und den Löhnen, wobei Mikrodaten für die USA und Deutschland verwendet wurden. Dabei kann die Hypothese unterstützt werden, dass in den USA Betriebe stärker experimentieren - gemessen anhand der Streuung der Produktivität und anderen betrieblichen Entscheidungsvariablen - als in Deutschland. Dies zeigt sich insbesondere bei jungen Betrieben und bei Betrieben, die ihre Technologie verändern. Wir finden ebenfalls einen größeren durchschnittlichen Einfluss der Einführung neuer Technologien auf die Produktivität und die Löhne in den USA als in Deutschland.

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Publisher Info
Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 19.

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Date of creation: 2003
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Handle: RePEc:zbw:faulre:19

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Related research
Keywords: ICT; Experimentation; Productivity; Internet Use; U.S.; Germany;

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Find related papers by JEL classification:
D20 - Microeconomics - - Production and Organizations - - - General
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February. [Downloadable!] (restricted)
    Other versions:
  2. Timothy Dunne & John Haltiwanger & Lucia Foster, 2000. "Wage and Productivity Dispersion in U.S. Manufacturing: The Role of Computer Investment," NBER Working Papers 7465, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Kevin M Stolarick, 1999. "IT Spending and Firm Productivity: Additional Evidence from the Manufacturing Sector," Working Papers 99-10, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  4. John M. Abowd & John Haltiwanger & Julia I. Lane & Kristin Sandusky, 2001. "Within and Between Firm Changes in Human Capital, Technology, and Productivity Preliminary and incomplete," Technical Papers 2001-03, Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  5. Shawn D Klimek & Ron S Jarmin & Mark E Doms, 2002. "IT Investment and Firm Performance in U.S. Retail Trade," Working Papers 02-14, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  6. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  7. Ericson, Richard & Pakes, Ariel, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Blackwell Publishing, vol. 62(1), pages 53-82, January. [Downloadable!] (restricted)
  8. Kevin M Stolarick, 1999. "Are Some Firms Better at IT? Differing Relationships between Productivity and IT Spending," Working Papers 99-13, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  9. Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2003. "Comparative Analysis of Firm Demographics and Survival: Micro-Level Evidence for the OECD Countries," OECD Economics Department Working Papers 348, OECD, Economics Department. [Downloadable!]
  10. Ron S Jarmin & Javier Miranda, 2002. "The Longitudinal Business Database," Working Papers 02-17, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bartelsman, Eric & Haltiwanger, John & Scarpetta1, Stefano, 2004. "Microeconomic evidence of creative destruction in industrial and developing countries," Policy Research Working Paper Series 3464, The World Bank. [Downloadable!]
    Other versions:
  2. Keiko Ito & Sébastien Lechevalier, 2009. "The evolution of the productivity dispersion of firms: a reevaluation of its determinants in the case of Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(3), pages 405-429, October. [Downloadable!] (restricted)
    Other versions:
  3. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2007. "Americans Do I.T. Better: US Multinationals and the Productivity Miracle," NBER Working Papers 13085, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Mirko Draca & Raffaella Sadun & John Van Reenen, 2006. "Productivity and ICT: A Review of the Evidence," CEP Discussion Papers dp0749, Centre for Economic Performance, LSE. [Downloadable!]
  5. Dirk Pilat, 2005. "Canada's Productivity Performance in International Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 10, pages 24-44, Spring. [Downloadable!]
  6. Eric J. Bartelsman & John C. Haltiwanger & Stefano Scarpetta, 2009. "Cross-Country Differences in Productivity: The Role of Allocation and Selection," NBER Working Papers 15490, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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