Skill biased organizational change? Evidence from a panel of British and French establishments
AbstractIn this paper we investigate evidence for the "skill bias" of organizational change (OC). These include the decentralization of authority, delayering of managerial functions and increased multi-tasking. We use several sources of panel data on British and French establishments. Three findings emerge: (i) organizational change tends to reduce the demand for unskilled workers in both countries; (ii) OC is retarded by increases in regional skill price differentials (a measure of the relative supply of skill); (iii) OC leads to greater productivity increases in establishments with larger initial skill endowments. We argue that OC, technology and human capital are complementary assets of the modern enterprise. The widespread introduction of new organizational forms may be an important factor in the declining demand for less skilled workers in OECD countries.
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Bibliographic InfoPaper provided by CEPREMAP in its series CEPREMAP Working Papers (Couverture Orange) with number 9917.
Length: 51 pages
Date of creation: 1999
Date of revision:
Other versions of this item:
- Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence From A Panel Of British And French Establishments," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1449-1492, November.
- Van Reenen, John & Caroli, Eve, 2001. "Skill-Biased Organizational Change? Evidence from a panel of British and French establishments," Economics Papers from University Paris Dauphine 123456789/10093, Paris Dauphine University.
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-10-04 (All new papers)
- NEP-IND-1999-10-04 (Industrial Organization)
- NEP-INO-1999-10-04 (Innovation)
- NEP-LAB-1999-10-04 (Labour Economics)
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