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Creative Disruption: Technology Innovation, Labour Demand and the Pandemic

Author

Listed:
  • Barth, Erling

    (Institute for Social Research, Oslo)

  • Bryson, Alex

    (University College London)

  • Dale-Olsen, Harald

    (Institute for Social Research, Oslo)

Abstract

We utilize a new survey on Norwegian firms' digitalization and technology investments, linked to population-wide register data, to show that the pandemic massively disrupted the technology investment plans of firms, not only postponing investments, but also introducing new technologies. More productive firms innovated, while less productive firms postponed investments. Most innovations were permanent, not due to acceleration of existing plans, thus the pandemic yields longterm influence in directions unanticipated before the pandemic. The new technologies are associated with increased labour demand for skilled workers, and reduced demand for unskilled workers, particularly for the more productive firms.

Suggested Citation

  • Barth, Erling & Bryson, Alex & Dale-Olsen, Harald, 2022. "Creative Disruption: Technology Innovation, Labour Demand and the Pandemic," IZA Discussion Papers 15762, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15762
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    Cited by:

    1. Gathmann, Christina & Kagerl, Christian & Pohlan, Laura & Roth, Duncan H.W., 2023. "The Pandemic Push: Digital Technologies and Workforce Adjustments," IZA Discussion Papers 16062, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    technology investments; digitalization; labour demand; pandemic; COVID-19;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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