{"title":"Data deepening and nonbalanced economic growth","authors":"Richard B. Freeman , Buyuan Yang , Baitao Zhang","doi":"10.1016/j.jmacro.2023.103503","DOIUrl":null,"url":null,"abstract":"<div><p>As a newly emerging factor, data can promote economic growth by driving technological progress, and nonbalanced growth between digital industries and nondigital industries has been notable in recent years. This paper provides a novel growth model with two sectors that differ in the degree of data deepening and the factor structure of the production function. In the model, data in one sector is the by-product of economic activities not only in its sector, but also in the other sector. More importantly, data utilization within and across sectors can spur new ideas and promote technological innovation. The model indicates that increases in the stock of data in the two sectors have opposite effects on the allocation of skilled labor between the two sectors. The skill premium (the wage of skilled labor relative to the wage of unskilled labor) decreases with an increase in the fraction of skilled labor employed in the data-extensive sector. With credible parameter values, model calibration shows that faster growth of output occurs in the more data-intensive sector and the high skill premium persists in the long run.</p></div>","PeriodicalId":47863,"journal":{"name":"Journal of Macroeconomics","volume":"75 ","pages":"Article 103503"},"PeriodicalIF":1.3000,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Macroeconomics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0164070423000034","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
As a newly emerging factor, data can promote economic growth by driving technological progress, and nonbalanced growth between digital industries and nondigital industries has been notable in recent years. This paper provides a novel growth model with two sectors that differ in the degree of data deepening and the factor structure of the production function. In the model, data in one sector is the by-product of economic activities not only in its sector, but also in the other sector. More importantly, data utilization within and across sectors can spur new ideas and promote technological innovation. The model indicates that increases in the stock of data in the two sectors have opposite effects on the allocation of skilled labor between the two sectors. The skill premium (the wage of skilled labor relative to the wage of unskilled labor) decreases with an increase in the fraction of skilled labor employed in the data-extensive sector. With credible parameter values, model calibration shows that faster growth of output occurs in the more data-intensive sector and the high skill premium persists in the long run.
期刊介绍：
Since its inception in 1979, the Journal of Macroeconomics has published theoretical and empirical articles that span the entire range of macroeconomics and monetary economics. More specifically, the editors encourage the submission of high quality papers that are concerned with the theoretical or empirical aspects of the following broadly defined topics: economic growth, economic fluctuations, the effects of monetary and fiscal policy, the political aspects of macroeconomics, exchange rate determination and other elements of open economy macroeconomics, the macroeconomics of income inequality, and macroeconomic forecasting.
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