CentER

Richard Nahuis

Abstract:

This thesis is centered around two empirical questions. The first question deals with the paradox that the ICT revolution does not pay off with higher productivity growth for the ICT-users. The interaction between production and knowledge accumulation and the 'general-purpose' nature of the ICT revolution is examined to explain the paradoxical finding. The second question - what explains the increase in wage inequality between high-skilled and low-skilled workers over the last two decades - is studied from several angles. The role for trade is assessed alongside of different technology-based explanations. Both questions are addressed from a uniform conceptual framework emphasizing the importance of knowledge and knowledge spillovers for understanding modern economic growth.