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The Impact of Office Machinery and Computer Capital on the Demand for Heterogeneous Labour

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Author Info

  • Falk, Martin

    ()
    (WIFO - Austrian Institute of Economic Research)

  • Koebel, Bertrand

    ()
    (Louis Pasteur University Strasbourg)

Abstract

We study the impact of office and computing machinery (OCM) on the demands for workers with different educational levels. The empirical analysis relies on a system of demand equations that nests the translog, the generalised Leontief and the normalised quadratic specifications. Using panel data on 35 German industries, we find little evidence for a robust substitutability relationship between unskilled workers and OCM capital in manufacturing industries. In the non-manufacturing sector, however, we find some evidence for substitutability between OCM capital and unskilled workers.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 873.

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Length: 23 pages
Date of creation: Sep 2003
Date of revision:
Publication status: published in: Labour Economics , 2004, 11 (1), 99-117
Handle: RePEc:iza:izadps:dp873

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Related research

Keywords: capital-skill complementarity; skill-biased technological change;

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References

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  1. Per Krusell & Lee E. Ohanian & Jose-Victor Rios-Rull & Giovanni L. Violante, 1997. "Capital-skill complementarity and inequality: a macroeconomic analysis," Staff Report 239, Federal Reserve Bank of Minneapolis.
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  11. Lucy Chennells & John Van Reenen, 1999. "Has technology hurt less skilled workers? A survey of the micro-econometric evidence," IFS Working Papers W99/27, Institute for Fiscal Studies.
  12. Koebel, Bertrand & Falk, Martin & Laisney, Francois, 2003. "Imposing and Testing Curvature Conditions on a Box-Cox Cost Function," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 319-35, April.
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Citations

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Cited by:
  1. Jungmittag, Andre & Welfens, Paul J. J., 2006. "Telecommunications Dynamics, Output and Employment," IZA Discussion Papers 2379, Institute for the Study of Labor (IZA).
  2. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2003. "The Skill Bias Effect of Technological and Organisational Change: Evidence and Policy Implications," IZA Discussion Papers 934, Institute for the Study of Labor (IZA).
  3. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis," IZA Discussion Papers 7958, Institute for the Study of Labor (IZA).
  4. Manuel A. Hidalgo Pérez & Jesús Rodríguez López & José Mª O.Kean Alonso, 2008. "Labor demand and information technologies: evidence for Spain, 1980-2005," Economic Working Papers at Centro de Estudios Andaluces E2008/13, Centro de Estudios Andaluces.
  5. Peichl, Andreas & Siegloch, Sebastian, 2012. "Accounting for labor demand effects in structural labor supply models," Labour Economics, Elsevier, vol. 19(1), pages 129-138.
  6. Koeniger, Winfried & Leonardi, Marco, 2006. "Capital Deepening and Wage Differentials: Germany vs. US," IZA Discussion Papers 2065, Institute for the Study of Labor (IZA).
  7. Ines P. Murillo, 2006. "Returns to Education and Human Capital Depreciation in Spain," ERSA conference papers ersa06p60, European Regional Science Association.
  8. Nathalie Chusseau & Michel Dumont, 2012. "Growing Income Inequalities in Advanced," Working Papers hal-00993359, HAL.
  9. Inés P. Murillo, 2011. "Human capital obsolescence: some evidence for Spain," International Journal of Manpower, Emerald Group Publishing, vol. 32(4), pages 426-445, July.
  10. repec:idb:brikps:61058 is not listed on IDEAS
  11. Jacob Funk Kirkegaard, 2007. "Offshoring, Outsourcing, and Production Relocation—Labor-Market Effects in the OECD Countries and Developing Asia," Working Paper Series WP07-2, Peterson Institute for International Economics.
  12. O'Mahony, Mary & Robinson, Catherine & Vecchi, Michela, 2008. "The impact of ICT on the demand for skilled labour: A cross-country comparison," Labour Economics, Elsevier, vol. 15(6), pages 1435-1450, December.

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