This article is based on a study by Bart van Ark, Robert Inklaar and Robert H. McGuckin (2002a), "Changing Gear: Productivity, ICT and Service: Europe and the United States," Research Memorandum GD60, Groningen Growth and Development Centre (downloadable from http://www.eco.rug.nl/ggdc).

In this paper we model U.S. labor supply and demand in considerable detail in order to capture the enormous heterogeneity of the labor force and its evolution over the next 25 years. We represent labor supplies for a large number of demographic groups as responses to prices of leisure and...