Is Human Capital the Key to the IT Productivity Paradox?

Arbeitspapier

Unlike previous analyses, we consider (i) that IT may affect productivity growth both directly and indirectly, through human capital interactions, and (ii) possible externalities in the use of IT. Examining, hypothetically, the statistical consequences of erroneously disregarding (i) and (ii) we shed light on the small or negative growth effects found in early U.S. studies, as well as the positive impacts reported recently. Our empirical analysis uses a 14-industry panel for Swedish manufacturing 1986-95. We find that human capital developments made the average effect of IT essentially zero in 1986 and steadily increasing thereafter, and, also, generated large differences in growth effects across industries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IUI Working Paper ; No. 551

Classification and Topics

• Classification: Wirtschaft ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Industry Studies: Manufacturing: General
• Subject: IT-human Capital Complementarity ; New Growth Theory ; Applied Econometrics ; Informationstechnik ; Produktivität ; Humankapital ; Neue Wachstumstheorie ; Schätzung ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mellander, Erik ; Savvidiou, Eleni ; Gunnarsson, Gudmundur
• Event: Veröffentlichung
• (who): The Research Institute of Industrial Economics (IUI)
• (where): Stockholm
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/95066
• Last update: 10.03.2025, 11:42 AM CET