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Upstairs, downstairs: Computers and skills on two floors of a large bank

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Author Info
David H. Autor
Frank Levy
Richard J. Murnane

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Abstract

Many studies document a positive correlation between workplace computerization and employment of skilled labor in production. Why does this correlation arise? The authors posit that improvements in computer-based technology create incentives to substitute machinery for people in performing tasks that can be fully described by procedural or "rules-based" logic and hence performed by a computer. This process typically leaves many tasks unaltered, and management plays a key role-at least in the short run-in determining how these tasks are organized into jobs, with significant implications for skill demands. This conceptual framework proves useful in interpreting how jobs were affected by the introduction of digital check imaging in two departments of a large bank. In one department, the tasks not computerized were subdivided into narrow jobs; in the other department, management combined multiple linked tasks to create jobs of greater complexity. The framework may be applicable to many organizations. (Author's abstract.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 55 (2002)
Issue (Month): 3 (April)
Pages: 432-447
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Handle: RePEc:ilr:articl:v:55:y:2002:i:3:p:432-447

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  1. Felipe Balmaceda, 2006. "Task-Specific Training and Job Design," Documentos de Trabajo 223, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  2. Leora Friedberg & Michael Owyang, 2004. "Explaining the Evolution of Pension Structure and Job Tenure," NBER Working Papers 10714, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Borghans,Lex & Weel,Bas,ter, 2005. "The Division of Labour, Worker Organisation, and Technological Change," Research Memoranda 005, Maastricht : ROA, Researchcentrum voor Onderwijs en Arbeidsmarkt. [Downloadable!]
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  5. Thomas Philippon & Ariell Reshef, 2007. "Skill Biased Financial Development: Education, Wages and Occupations in the U.S. Financial Sector," NBER Working Papers 13437, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Borghans,Lex & Weel,Bas,ter, 2002. "The Diffusion of Computers and the Distribution of Wages," Research Memoranda 039, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  7. David Autor & Frank Levy & Richard Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov. [Downloadable!]
    Other versions:
  8. Casey Ichniowski & Kathryn Shaw, 2003. "Beyond Incentive Pay: Insiders' Estimates of the Value of Complementary Human Resource Management Practices," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 155-180, Winter. [Downloadable!] (restricted)
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This page was last updated on 2008-7-30.


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