ICT and Declining Labor Productivity in OECD

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Erdem E., Banday T. P.

SN Business & Economics, cilt.4, sa.33, ss.1-19, 2024 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 4 Sayı: 33
  • Basım Tarihi: 2024
  • Doi Numarası: 10.1007/s43546-024-00626-5
  • Dergi Adı: SN Business & Economics
  • Derginin Tarandığı İndeksler: EBSCO Legal Source
  • Sayfa Sayıları: ss.1-19
  • Erciyes Üniversitesi Adresli: Evet

Özet

In the era of digital transformation, understanding the factors that drive labor productivity is of paramount importance. Against this backdrop, this study explores the function of Information and Communication Technology (ICT) in labor productivity of OECD countries from 1996 to 2020. Using quantile regression models to capture heterogeneous efects, we fnd a substantial positive relationship between ICT use and labor productivity. Our empirical analysis reveals that ICT adoption and utilization play a pivotal role in enhancing labor productivity and fostering economic growth. Moreover, the impact of ICT and other factors varies across diferent quantiles of the labor productivity distribution, highlighting heterogeneous efects. These fndings underscore the signifcance of ICT adoption strategies in enhancing labor productivity and driving economic growth. The study’s implications for industrial policy in OECD countries includes; ICT infrastructure upgrades and investments in digital skills training to counteract the productivity slowdown.