Information Technology and Productivity Growth in the 2000s
US productivity growth experienced continued productivity growth after 2000 even as investment, particularly in information technology (IT), slowed. This paper uses industry-level data to examine the link between average labor productivity (ALP) growth and IT in the post-2000 period. We use difference-in-difference and cross-sectional regressions to show that the link between ALP growth and IT-intensity is weaker after 2000 than before. These results are robust to alternative measures of IT-intensity such as the IT share of capital services, the level of IT capital depth, and the share of IT capital services in total output. We conclude that the post-2000 productivity gains in the United States do not appear to have been driven directly by IT. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2007.
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Volume (Year): 8 (2007)
Issue (Month): (May)
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