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Concentrated Growth: The Role of the IT Sector
Abstract: Productivity is the engine of economic growth and a key factor in determining standards of living and economic well-being. In this article, we study the distribution of total factor productivity (TFP) growth across sectors of the U.S. economy—i.e., the composition of TFP growth—and demonstrate that over approximately the past four decades, U.S. TFP growth has been highly concentrated, with the information technology (IT) sector in particular playing a large and outsized role.
JEL Classification: D24; E24; O11; O40; O47;
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Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Chicago Fed Letter
Publication Date: 2025-11
Volume: 515
Pages: 9