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New technologies and the labor market

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  • Atalay, Enghin
  • Phongthiengtham, Phai
  • Sotelo, Sebastian
  • Tannenbaum, Daniel

Abstract

Using newspaper job ad text from 1960 to 2000, we measure job tasks and the adoption of individual information and communication technologies (ICTs). Most new technologies are associated with an increase in nonroutine analytic tasks, and a decrease in nonroutine interactive, routine cognitive, and routine manual tasks. We embed these interactions in a quantitative model of worker sorting across occupations and technology adoption. Through the lens of the model, the arrival of ICTs broadly shifts workers away from routine tasks, which increases the college premium. A notable exception is the Microsoft Office suite, which has the opposite set of effects.

Suggested Citation

  • Atalay, Enghin & Phongthiengtham, Phai & Sotelo, Sebastian & Tannenbaum, Daniel, 2018. "New technologies and the labor market," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 48-67.
    • Handle: RePEc:eee:moneco:v:97:y:2018:i:c:p:48-67
    DOI: 10.1016/j.jmoneco.2018.05.008
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    More about this item

    Keywords

    Income inequality; Information and communication technologies; Occupational choice; Routine and nonroutine tasks; Technological change;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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