23 Pages Posted: 25 Jan 2014 Last revised: 30 Sep 2014
Date Written: January 2014
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 U.S. 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 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.
Suggested Citation: Suggested Citation
Acemoglu, Daron and Autor, David H. and Dorn, David and Hanson, Gordon H. and Price, Brendan, Return of the Solow Paradox? It, Productivity, and Employment in U.S. Manufacturing (January 2014). NBER Working Paper No. w19837. Available at SSRN: https://ssrn.com/abstract=2384295