Information and Communication Technologies and Skill Upgrading: the Role of Internal vs External Labour Markets
AbstractFollowing the adoption of information and communication technologies (ICT), firms are likely to face increasing skill requirements. They may react either by training or hiring the new skills, or by a combination of both. We first show that ICT are indeed skill biased and we then assess the relative importance of external and internal labour market strategies. We show that skill upgrading following ICT adoption takes place mostly through internal labour markets adjustments. The introduction of ICT is associated with an upward shift in firms' occupational structure, of which one third is due to hiring and firing workers from and to the external labour market, whereas two-thirds are due to promotions. Moreover, we find no compelling evidence of external labour market strategies based on "excess turnover". In contrast, French firms heavily rely on training in order to upgrade the skill level of their workforce, even if this varies across industries.
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Bibliographic InfoPaper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2011-4.
Length: 34 pages
Date of creation: 2011
Date of revision:
Technical change; labour turnover; skill bias; training; internal labour markets;
Other versions of this item:
- Luc Behaghel & Eve Caroli & Emmanuelle Walkowiak, 2012. "Information and communication technologies and skill upgrading: the role of internal vs external labour markets," Oxford Economic Papers, Oxford University Press, vol. 64(3), pages 490-517, July.
- Behaghel, Luc & Caroli, Eve & Walkowiak, Emmanuelle, 2011. "Information and Communication Technologies and Skill Upgrading: The Role of Internal vs. External Labour Markets," IZA Discussion Papers 5494, Institute for the Study of Labor (IZA).
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
- NEP-BEC-2011-02-05 (Business Economics)
- NEP-HRM-2011-02-05 (Human Capital & Human Resource Management)
- NEP-ICT-2011-02-05 (Information & Communication Technologies)
- NEP-LAB-2011-02-05 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
- repec:hal:wpaper:halshs-00646595 is not listed on IDEAS
- Behaghel, Luc & Moschion, Julie, 2012.
"Skilled Labor Supply, IT-Based Technical Change and Job Instability,"
IZA Discussion Papers
6839, Institute for the Study of Labor (IZA).
- Luc Behaghel & Julie Moschion, 2011. "Skilled labor supply, IT-based technical change and job instability," PSE Working Papers halshs-00646595, HAL.
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