US labor productivity in ICT-skill intensive industries experienced tremendous increases in post-1995 trend growth … compared to Germany, while other (non-ICT-skill intensive) industries showed similar growth trends in both countries. Examining … the source of industry productivity growth in German ICT-skill intensive sectors, there is no empirical evidence on the …

productivity and a risky technology with productivity subject to sizeable shocks. Strict EPL makes the risky technology relatively … less attractive because it is more costly to shed workers upon receiving a low productivity draw. We calibrate the model … mechanism can explain a considerable portion of the slowdown in productivity in the EU relative to the US since 1995 …