US-German Differences In Productivity Growth

This paper shows that US productivity growth post 1991 was driven largely by ICT capital-skill complementarities. In the mid - 1990s these complementarities were strongest in goods-producing sectors while an incredible 1.6 percent of US labor productivity growth post 2000 is due to ICT capital-skill complementarities in service sectors. The authors' detailed regressions by skill intensity and ICT type identify that industry productivity growth in Office Machinery & Computers on the production side and Financial Intermediation & Insurance on the service side was definitely driven by those ICT capital-skill complementarities.