Abstract

Using a large, longitudinal, nationally representative workplace-level data-set, we explore the productivity gains associated with computer use and organizational redesign. The empirical strategy involves the estimation of a production function, augmented to account for technology use and organizational design, correcting for unobserved heterogeneity. Our first-difference and GMM estimates suggest that the productivity premium associated with computer use is not statistically different from zero. Neither is there any evidence to support the idea that complementarities between computer use and organizational redesign have any substantial bearing on productivity.