IDEAS home Printed from https://ideas.repec.org/a/fip/fedhle/102271.html
   My bibliography  Save this article

Concentrated Growth: The Role of the IT Sector

Author

Abstract

Productivity is the engine of economic growth and a key factor in determining standards of living and economic well-being. In this article, we study the distribution of total factor productivity (TFP) growth across sectors of the U.S. economy—i.e., the composition of TFP growth—and demonstrate that over approximately the past four decades, U.S. TFP growth has been highly concentrated, with the information technology (IT) sector in particular playing a large and outsized role.

Suggested Citation

  • Joel M. David & Gustavo de Souza & Adalyn Schommer, 2025. "Concentrated Growth: The Role of the IT Sector," Chicago Fed Letter, Federal Reserve Bank of Chicago, vol. 515, pages 1-9, November.
    • Handle: RePEc:fip:fedhle:102271
    as

    Download full text from publisher

    File URL: https://www.chicagofed.org/-/media/publications/chicago-fed-letter/2025/cfl515.pdf?sc_lang=en
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedhle:102271. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lauren Wiese (email available below). General contact details of provider: https://edirc.repec.org/data/frbchus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.