IDEAS home Printed from https://ideas.repec.org/p/euf/dispap/161.html
   My bibliography  Save this paper

Capital Accumulation, Total Factor Productivity, and Employment Growth Medium-Term Relations in a Cross-Section Analysis

Author

Listed:
  • Robert Stehrer

Abstract

There is a widespread concern that new technologies and digitalization have strong negative impacts on labour demand. This paper analyses the impact of ICT capital accumulation and TFP growth on employment growth (persons and hours worked) and the labour income share in the pre- and post-crisis years. The cross-section results (over countries and industries) suggest that on average TFP growth has no significant influence on employment growth, and perhaps even a slightly positive one, which may point to increasing competitiveness. There is no evidence of significant impacts of the accumulation of ICT capital on employment growth, whereas a positive relationship is found between non-ICT capital accumulation and employment growth. Concerning labour income shares, results at the industry level point to a negative impact of TFP growth, but no effects of ICT capital accumulation. Domestic and foreign inter-industry linkages have – if at all – only modest impacts. These results are generally in line with some recent literature pointing towards only limited effects of new technologies on labour demand.

Suggested Citation

  • Robert Stehrer, 2022. "Capital Accumulation, Total Factor Productivity, and Employment Growth Medium-Term Relations in a Cross-Section Analysis," European Economy - Discussion Papers 161, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:dispap:161
    as

    Download full text from publisher

    File URL: https://economy-finance.ec.europa.eu/publications/fellowship-initiative-2020-2021-capital-accumulation-total-factor-productivity-and-employment-growth_en
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euf:dispap:161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ECFIN INFO (email available below). General contact details of provider: https://edirc.repec.org/data/dg2ecbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.