Social Sciences
4 years ago

Falling IT prices reshaping labor share and concentration in France.

American Economic Review
Information Technology and Returns to Scale
Danial Lashkari, Arthur Bauer, Jocelyn Boussard

Paper Summary

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The fall in IT prices has big effects on technology. When IT prices drop, firms change how they use factors like labor and capital. In France, firms are using more IT because it's cheaper. This shift in technology is causing big changes in how much workers get paid and how businesses are organized.