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Implications of Information Technology for Employment, Skills, and Wages: Findings from Sectoral and Case Study Research

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  • Michael J., Handel

Abstract

This paper reviews evidence from industry-specific and case studies that shed light on the extent to which computers and automation eliminate jobs, raise job skill requirements, and, consequently, contribute to increased wage inequality between less- and more skilled workers. This paper complements a previous review of large-scale econometric studies on the same subject, Michael J. Handel, "Implications of Information Technology for Employment, Skills, and Wages: A Review of Recent Research." This paper examines the implications for work and employment of different kinds of manufacturing automation (NC/CNC machine tools, robotics, automated process control) and white-collar computer technologies (data entry, data processing, ATMs, CAD). The sectoral and case study evidence suggests technological change works mostly in the direction of skill upgrading but that the effects on employment levels, occupational composition, skill requirements within jobs, and wages are considerably more modest than theories of skill-biased technological change suggest.

Suggested Citation

  • Michael J., Handel, 2004. "Implications of Information Technology for Employment, Skills, and Wages: Findings from Sectoral and Case Study Research," MPRA Paper 80241, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80241
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    References listed on IDEAS

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    1. Handel, Michael J., 2003. "Implications of Information Technology for Employment, Skills, and Wages: A Review of Recent Research," MPRA Paper 80077, University Library of Munich, Germany.
    2. Paul S. Adler & Bryan Borys, 1989. "Automation and Skill: Three Generations of Research on the NC Case," Politics & Society, , vol. 17(3), pages 377-402, September.
    3. Jeffrey H. Keefe, 1991. "Numerically Controlled Machine Tools and Worker Skills," ILR Review, Cornell University, ILR School, vol. 44(3), pages 503-519, April.
    4. H. Allan Hunt & Timothy L. Hunt, "undated". "Human Resource Implications of Robotics," Upjohn Working Papers hahtlh1985, W.E. Upjohn Institute for Employment Research.
    5. Alan B. Krueger, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(1), pages 33-60.
    6. Anne Fearfull, 1992. "The Introduction of Information and Office Technologies: The Great Divide?'," Work, Employment & Society, British Sociological Association, vol. 6(3), pages 423-442, September.
    7. Leonard Lynn, 1983. "Japanese Robotics: Challenge and—Limited—Exemplar," The ANNALS of the American Academy of Political and Social Science, , vol. 470(1), pages 16-27, November.
    8. Larry W. Hunter & John J. Lafkas, 2003. "Opening the Box: Information Technology, Work Practices, and Wages," ILR Review, Cornell University, ILR School, vol. 56(2), pages 224-243, January.
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    Cited by:

    1. Michael J. Handel, 2016. "What do people do at work? [Was machen Menschen bei der Arbeit?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(2), pages 177-197, October.
    2. Handel, Michael J., 2020. "Job Skill Requirements: Levels and Trends," MPRA Paper 100590, University Library of Munich, Germany.

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    More about this item

    Keywords

    computers; automation; robots; technological unemployment; skill-biased technological change; earnings inequality;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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