During the past two centuries, major technological breakthroughs such as the steam engine and electricity have acted as the catalysts for growth and have resulted in a marked increase in material well-being. The dominant technology today - information and communication technology (ICT) - does not seem to drive growth as effectively and has coincided with an apparent increase in wage inequality. This book provides explanations of these two characteristics of modern economies and analyses them from both an individual and integrated perspective. Richard Nahuis explores and combines the seemingly separate phenomena of wage inequality between high-skilled and low-skilled workers, and the relatively low productivity growth experienced by most countries. The author provides a number of alternative theories for the increase in wage inequality as a result of new technologies, combined with an extensive review of the associated literature. He goes on to detail the technological revolution, describe why this does not necessarily result in high productivity growth and outline the best methods to measure productivity in the new economy. This exhaustive exploration of productivity growth and wage inequality between high-skilled and low-skilled workers in the knowledge economy will be welcomed by economists and policymakers interested in the complex relationships between labour markets, innovation and technical change.