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The Impact of ICT and Intangible Capital Accumulation on Labour Demand Growth and Functional Income Shares

Author

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  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This paper investigates whether the diffusion of tangible IT and CT capital and intangible capital asset types has an impact on labour demand growth and the share of labour income in total income at the industry and country level. The econometric analysis is derived from a Cobb-Douglas production function taking empirical stylized facts into account. The effects of technical progress embodied in the various forms of capital impact along inter-industry and intercountry production linkages, which are considered by using global value chain indicators. The analysis is broken down to examine the influence on different types of labour, including the dimensions of gender, age, and educational attainment. Accumulation of ICT assets have generally insignificant and in some cases small positive effects on labour demand and income shares, though patterns differ across types of labour. Intangible assets show a positive relation with respect to labour demand growth.

Suggested Citation

  • Robert Stehrer, 2022. "The Impact of ICT and Intangible Capital Accumulation on Labour Demand Growth and Functional Income Shares," wiiw Working Papers 218, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:218
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    References listed on IDEAS

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    Cited by:

    1. Michael Landesmann & Sandra M. Leitner, 2023. "Employment Effects of Offshoring, Technological Change and Migration in a Group of Western European Economies: Impact on Different Occupations," wiiw Working Papers 226, The Vienna Institute for International Economic Studies, wiiw.
    2. Klaus Friesenbichler & Agnes Kügler & Julia Schieber-Knöbl, 2022. "Unternehmensproduktivität über Sektoren in Österreich. Erste Evidenz von Mikrodaten," WIFO Research Briefs 21, WIFO.

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    More about this item

    Keywords

    capital accumulation; ICT capital; intangibles; labour demand; income distribution;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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