Human capital is the key to the IT productivity paradox

Arbeitspapier

Unlike previous analysis, we consider (i) possible externalities in the use of IT and (ii) IT and human capital interactions. Examining, hypothetically, the statistical consequences of erroneously disregarding (i) and (ii) we shed light on the small or negative growth effects found in early studies of the effects of IT on productivity growth, as well as the positive impacts reported more 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: Working Paper ; No. 2004:13

Classification and Topics

• Classification: Wirtschaft ; Organization of Production ; Industry Studies: Manufacturing: General ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: IT productivity paradox ; applied econometrics

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gunnarsson, Gudmundur ; Mellander, Erik ; Savvidou, Eleni
• Event: Veröffentlichung
• (who): Institute for Labour Market Policy Evaluation (IFAU)
• (where): Uppsala
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/82174
• Last update: 10.03.2025, 11:41 AM CET