Italian productivity slowdown linked to changing direction of technological progress.
The article investigates why Italian productivity has slowed down. By using a special mathematical model, the researchers found that there was a big change in how technology was affecting productivity in the mid-1990s. Before that, technology was making workers more efficient but favoring machines. After the change, this effect disappeared, and the focus shifted to how many workers and machines were available. This shift might be one reason why Italian productivity has not been growing as fast.