@TechReport{iza:izadps:dp7906, author={Acemoglu, Daron and Autor, David and Dorn, David and Hanson, Gordon H. and Price, Brendan}, title={Return of the Solow Paradox? IT, Productivity, and Employment in U.S. Manufacturing}, year={2014}, month={Jan}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={7906}, url={https://www.iza.org/publications/dp7906}, abstract={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.}, keywords={Solow paradox;employment;IT capital;productivity}, }