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New Technologies And The Demand For Heterogeneous Labor: Firm-Level Evidence For The German Business-Related Service Sector

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Author Info

  • Ulrich Kaiser

Abstract

This paper investigates the impact of modern information and communication technologies on the demand for heterogeneous labor. It starts with an interrelated factor demand system. The 'desired' level of employment which is needed in such models, is derived from a Generalized Leontief cost function with quasi-fixed factors. Firm-level, cross-sectional data taken from an innovation survey in the service sector are used in the empirical analysis. The model is estimated by a trivariate ordered probit model. Evidence in favor of skill-biased technological change in the fast-growing German business-related services sector is found. 'Ibe paper suggests a new method of calculating skill-specific and firm-specific labor cost from information on total labor cost and the share of each skill group in total employment only.

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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 9 (2000)
Issue (Month): 5 ()
Pages: 465-486

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Handle: RePEc:taf:ecinnt:v:9:y:2000:i:5:p:465-486

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Related research

Keywords: interrelated factor demands; Generalized Leontief cost function; heterogeneous labor demand; business-related services; labor cost decomposition; aivariate ordad probit model;

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Citations

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Cited by:
  1. Ziesemer,Thomas, 2002. "ICT as Technical Change in the Matching and Production Functions of a Pissarides-Dixit-Stiglitz model," Research Memoranda 022, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
  2. Hollenstein, Heinz, 2004. "Determinants of the adoption of Information and Communication Technologies (ICT): An empirical analysis based on firm-level data for the Swiss business sector," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 315-342, September.
  3. Accinelli, Elvio & Sanchez Carrera, Edgar J., 2011. "Strategic complementarities between innovative firms and skilled workers: The poverty trap and the policymaker's intervention," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 30-40, February.
  4. Falk, Martin, 2001. "Organizational change, new information and communication technologies and the demand for labor in services," ZEW Discussion Papers 01-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Spitz, Alexandra, 2004. "Are Skill Requirements in the Workplace Rising? Stylized Facts and Evidence on Skill-Biased Technological Change," ZEW Discussion Papers 04-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. M. Piva & E. Santarelli & M. Vivarelli, 2003. "The Skill Bias Effect of Technological and Organisational Change: Evidenceand Policy Implications," Working Papers 486, Dipartimento Scienze Economiche, Universita' di Bologna.
  7. Franz, Wolfgang, 1999. "Real and monetary challenges to wage policy in Germany at the turn of the millennium: technical progress, globalization and European Monetary Union," ZEW Discussion Papers 99-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Beckmann, Michael, 2000. "Unternehmenspolitik, Managerkontrolle und Personalabbau in Deutschland : theoretische Ansätze und empirische Analyse mit Daten des IAB-Betriebspanels (Corporate policy, manager control and staff redu," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(4), pages 594-608.
  9. Peters, Bettina, 2005. "Employment Effects of Different Innovation Activities: Microeconometric Evidence," ZEW Discussion Papers 04-73 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Mughal, Mazhar & Diawara, Barassou, 2011. "Human capital and the adoption of information and communications technologies: Evidence from investment climate survey of Pakistan," Economics Discussion Papers 2011-21, Kiel Institute for the World Economy.
  11. Lena Jacobi & Sandra Schaffner, 2008. "Does Marginal Employment Substitute Regular Employment? – A Heterogeneous Dynamic Labor Demand Approach for Germany," Ruhr Economic Papers 0056, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  12. Falk, Martin, 2001. "Diffusion of information technology, internet use and the demand of heterogeneous labor," ZEW Discussion Papers 01-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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