American childen born to parents in the top 1 percent of the income distribution are 10 times more likely to grow up to be an inventor than those born to parents with incomes below the median, writes John Wu in Innovation Files.

Fact of the Week: An American Child Born to Parents in the Top 1 Percent of the Income Distribution is 10 Times More Likely to Grow up to be an Inventor Than a Child Born to Parents With Incomes Below the Median

Average annual growth of U.S. labor productivity over the past five years hit 1.9 percent in the third quarter of 2024.

Fact of the Week: US Labor Productivity Is Rising, Potentially Suggesting Another Productivity Boom in This Decade

Labor productivity growth during the U.K.'s Industrial Revolution averaged below 0.4 percent from 1770 to 1830, and only gradually increased to about 0.8 percent in 1860.

Fact of the Week: Labor Productivity Grew Less Than 0.4 Percent Annually During the Industrial Revolution in the United Kingdom

After analyzing technological change over recessions and across OECD countries, economists find that it wasn't at fault for sluggish employment growth in the United States post-Great Recession, writes John Wu in Innovation Files.

Fact of the Week: Automation Is Not the Culprit Behind Sluggish Employment Growth in the Years Following the Great Recession

Between 2006 and 2016, the U.S. economy grew at an anemic rate of 1.4 percent, due in large part to the 2007-09 recession. But new statistics from the Bureau of Economic Analysis highlight a bright spot, providing evidence that an outsized portion of overall growth has come from the digital economy, which grew at 5.2 percent annually.

Fact of the Week: The Digital Economy Grew by 67 Percent Between 2006 and 2016

Emerging technologies promise to bring about a new production revolution that will increase welfare throughout society, but it is expected to have the largest impact on low-productivity jobs. This could increase the proportion of high-paying and high-productivity jobs, but it also threatens a larger disruption to society, as lower-skill workers have more difficulties changing industries.

Fact of the Week: 72 Percent of Jobs Created in the U.S. from 2010 to 2016 Were Below Average in Both Compensation and Productivity

The U.S. economy has polarized since 1980, with widening gaps between high- and low-skilled wages driving increased inequality. One study has provided a partial explanation for this trend, identifying that sectors with high “income elasticity” (where demand is more sensitive to changes in income) are more likely to employ both high- and low-skilled workers, but less likely to employ medium-skilled workers.

Fact of the Week: Sectors With High “Income Elasticity” Employ Fewer Medium-Skill Workers, Explaining 60 Percent of the Decline in Their Share of Wages Between 1980 and 2016

From 2004 to 2014, IT investment and adoption contributed 1.4 percentage points annually to U.S. productivity growth, writes John Wu in Innovation Files.

Innovation Fact of the Week: IT Adoption Boosted U.S. Productivity Growth by 1.4 Percentage Points Per Year From 2004 to 2014

A recent paper published by the Center for Economic Studies finds that just under 35 percent of inventors (those granted patents) in the U.S. in 2016 were born abroad.

Fact of the Week: Americans Continue To Earn Higher Household Incomes Than Previous Generations

Related

Fact of the Week: An American Child Born to Parents in the Top 1 Percent of the Income Distribution is 10 Times More Likely to Grow up to be an Inventor Than a Child Born to Parents With Incomes Below the Median

Fact of the Week: US Labor Productivity Is Rising, Potentially Suggesting Another Productivity Boom in This Decade

Fact of the Week: Labor Productivity Grew Less Than 0.4 Percent Annually During the Industrial Revolution in the United Kingdom