Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73819
Authors: 
Strobel, Thomas
Year of Publication: 
2010
Series/Report no.: 
Ifo Working Paper 89
Abstract: 
US labor productivity in ICT-skill intensive industries experienced tremendousincreases in post–1995 trend growth compared to Germany, while other (non-ICT-skillintensive) industries showed similar growth trends in both countries. Examining thesource of industry productivity growth in German ICT-skill intensive sectors, there is noempirical evidence on the influence of ICT-skill complementarities; rather was productivitygrowth of German Motor Vehicles & Other Transports driven by Non-ICT-skillcomplementarities. In case of the US two ICT-skill intensive sectors, Office Machinery &Electronic Equipment and Motor Vehicles & Other Transport, were found to haveexperienced strong productivity growth via ICT-skill complementarities. These findingsshed light on varying sectoral complementarities between physical and human capitaland show a decisive disparity in the source of German-US productivity differentials inthe goods-producing sector during the New Economy. Such differentials originatedfrom a substantial dissimilarity in production processes as well as from higher ICTintensity and skill endowment in the US.
Subjects: 
Industry productivity growth
heterogeneous labor
capital-skill complementarity
information and communication technology
JEL: 
O30
O40
O50
Document Type: 
Working Paper

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