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De-routinization in the fourth industrial revolution: Firm-level evidence

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  • Arntz, Melanie
  • Genz, Sabrina
  • Gregory, Terry
  • Lehmer, Florian
  • Zierahn-Weilage, Ulrich

Abstract

This paper examines the extent to which aggregate-level de-routinization can be attributed to firm-level technology adoption during the most recent technological expansion. We use administrative data and a novel firm survey to distinguish frontier technologies from older technologies. We find that adopters of frontier technologies contribute substantially to deroutinization. However, this is driven only by a subset of these firms: large adopters replace routine jobs and less routine-intensive adopters experience faster growth. These scale and composition effects reflect firms' readiness to adopt and implement frontier technologies. Our results suggest that an acceleration of technology adoption would be associated with faster de-routinization and an increase in between-firm heterogeneity.

Suggested Citation

  • Arntz, Melanie & Genz, Sabrina & Gregory, Terry & Lehmer, Florian & Zierahn-Weilage, Ulrich, 2024. "De-routinization in the fourth industrial revolution: Firm-level evidence," ZEW Discussion Papers 24-005, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:283011
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    More about this item

    Keywords

    technology; automation; tasks; capital-labor substitution; decomposition;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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
    • 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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