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Computerization of White Collar Jobs

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  • Marcus Dillender

    (University of Illinois at Chicago)

Abstract

We investigate the impact of computerization of white-collar jobs on wages and employment. Using online job postings from 2007 and 2010-2016 for office and administrative support (OAS) jobs, we show that when firms adopt new software at the job-title level they increase the skills required of job applicants. Furthermore, firms change the task content of such jobs, broadening them to include tasks associated with higher-skill office functions. We aggregate these patterns to the local labor-market level, instrumenting for technology adoption with national measures. We find that a 1 standard deviation increase in OAS technology usages reduces employment in OAS occupations by about 1 percentage point and increases wages for college graduates in OAS jobs by over 3 percent. We find negative wage spillovers, with wages falling for both workers with no college experience and college graduates. These losses are in part driven by high-skill office occupations. These results are consistent with technological adoption inducing a realignment in task assignment across occupations, lending office support occupations to become higher skill and hence less at risk from further automation. In addition, we find that total employment and wages per population increase with technological adoption, indicating average gains from computerization that are unequally distributed across the labor market.

Suggested Citation

  • Marcus Dillender, 2019. "Computerization of White Collar Jobs," Upjohn Working Papers 19-310, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:19-310
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    Cited by:

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    4. Filippo Bontadini & Francesco Vona, 2023. "Anatomy of Green Specialisation: Evidence from EU Production Data, 1995–2015," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(3), pages 707-740, August.
    5. Chuan, Amanda & Zhang, Weilong, 2023. "Non-college Occupations, Workplace Routinization, and the Gender Gap in College Enrollment," IZA Discussion Papers 16089, Institute of Labor Economics (IZA).
    6. Eliza Forsythe, 2020. "Automation and Technological Change: The Outlook for Workers and Economies," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(03), pages 27-30, September.
    7. David J Deming & Kadeem Noray, 2020. "Earnings Dynamics, Changing Job Skills, and STEM Careers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1965-2005.
    8. Chuan, A. & Zhang, W., 2021. "Non-College Occupations, Workplace Routinization, and the Gender Gap in College Enrollment," Cambridge Working Papers in Economics 2177, Faculty of Economics, University of Cambridge.

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    More about this item

    Keywords

    computerizations; job postings; office and administrative; task content; technology adoption; skill; wages;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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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