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ICT and occupation-based measures of organisational change: Firm and employee outcomes

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  • Böckerman, Petri
  • Kauhanen, Antti
  • Maliranta, Mika

Abstract

Abstract: To examine the productivity, employment and wage effects of ICT, we apply novel occupation based measures of organisational change within firms. With these measures, we directly address the complementarities between ICT and organisational changes. Our results support the view that organisational change complements ICT investments in a productivity-enhancing manner. In particular, the ICT-driven productivity gains are associated with the destruction of routine and non-interactive tasks in an organisation. Furthermore, using longitudinal aspects of our linked employer-employee data, we find that whereas ICT does not affect the probability of an employee becoming unemployed, it has a positive impact on the wage growth of retained employees.

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series ETLA Working Papers with number 2.

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Length: 39 pages
Date of creation: 10 Dec 2012
Date of revision:
Handle: RePEc:rif:wpaper:2

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Keywords: ICT; innovation; organisational change; restructuring; productivity; performance; wages;

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  1. Becker, Sascha & Ekholm, Karolina & Muendler, Marc-Andreas, 2012. "Offshoring and the Onshore Composition of Tasks and Skills," CAGE Online Working Paper Series 97, Competitive Advantage in the Global Economy (CAGE).
  2. Pekka Ilmakunnas & Mika Maliranta & Jari Vainiomaki, 2000. "The Roles of Employer and Employee Characteristics for Plant Productivity," Econometric Society World Congress 2000 Contributed Papers 1349, Econometric Society.
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  9. David H. Autor & Frank Levy & Richard J. Murnane, 2001. "The Skill Content of Recent Technological Change: An Empirical Exploration," NBER Working Papers 8337, National Bureau of Economic Research, Inc.
  10. Petri Böckerman & Mika Maliranta, 2013. "Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(4), pages 878-914, October.
  11. Bauer, Thomas & Bender, Stefan, 2002. "Technological Change, Organizational Change, and Job Turnover," CEPR Discussion Papers 3534, C.E.P.R. Discussion Papers.
  12. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
  13. Nilsson Hakkala, Katariina & Heyman, Fredrik & Sjöholm, Fredrik, 2008. "Multinational Firms and Job Tasks," Working Paper Series 781, Research Institute of Industrial Economics.
  14. Ridder, Geert & Moffitt, Robert, 2007. "The Econometrics of Data Combination," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 75 Elsevier.
  15. Steven J. Davis & John Haltiwanger, 1990. "Gross Job Creation and Destruction: Microeconomic Evidence and Macroeconomic Implications," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 123-186 National Bureau of Economic Research, Inc.
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  17. Maliranta, Mika, 2009. "Työpaikka- ja työntekijävirrat ja tehtävärakenteiden dynamiikka Suomen yrityssektorilla," Discussion Papers 1177, The Research Institute of the Finnish Economy.
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