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Workers' skill level and information technology: evidence from German service firms

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  • Falk, Martin
  • Seim, Katja

Abstract

This paperanalyses the link between human capitaland information technology(IT ) in the service production process. The analysis is based on 1994 cross-sectional data for 1929 German. Firms drawn from the first wave of the Mannheim Service Innovation Panel (MIP-S). Factor demand functions are used to analyse the determinants of the Firm-specific skillstructure. The empirical evidence indicates that firms with a higher IT investment to sales ratio employ a larger fraction of high-skilled workers. The relationship between IT investment and medium-skilled labour is rather weak while the unskilled labourshare is negatively related to the IT investment to sales ratio. U sing a translog production function to assess the productivity of different input factors, we find that human and informationcapital provide the most powerful contributions to output in the service sector. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 99-14.

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Date of creation: 1999
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Handle: RePEc:zbw:zewdip:5231

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Related research

Keywords: Information technology; skills; labour demand; service sector;

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References

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  1. Erik Brynjolfsson & Lorin Hitt, 1997. "Information Technology as a Factor of Production: The Role of Differences Among Firms," Working Paper Series 201, MIT Center for Coordination Science.
  2. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
  3. Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.
  4. Jacques Mairesse & Bronwyn H. Hall, 1996. "Estimating the Productivity of Research and Development: An Exploration of GMM Methods Using Data on French & United States Manufacturing Firms," NBER Working Papers 5501, National Bureau of Economic Research, Inc.
  5. Emmanuel Duguet & Nathalie Greenan, 1997. "Le biais technologique : une analyse économétrique sur données individuelles," Revue économique, Presses de Sciences-Po, vol. 0(5), pages 1061-1089.
  6. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
  7. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
  8. Leung, Siu Fai & Yu, Shihti, 1996. "On the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 197-229.
  9. Licht, Georg & Moch, Dietmar, 1997. "Innovation and Information Technology in Services," ZEW Discussion Papers 97-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Haskel, Jonathan & Heden, Ylva, 1999. "Computers and the Demand for Skilled Labour: Industry- and Establishment-Level Panel Evidence for the UK," Economic Journal, Royal Economic Society, vol. 109(454), pages C68-79, March.
  11. Frank R. Lichtenberg, 1996. "The Output Contributions of Computer Equipment and Personnel: A Firm- Level Analysis," NBER Working Papers 4540, National Bureau of Economic Research, Inc.
  12. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
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Citations

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Cited by:
  1. Kölling, Arnd & Schank, Thorsten, 2002. "Skill-biased technological change, international trade and the wage structure," Discussion Papers 14, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  2. Addison, John T. & Bellmann, Lutz & Schank, Thorsten & Teixeira, Paulino, 2005. "The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the German LIAB. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?," IZA Discussion Papers 1780, Institute for the Study of Labor (IZA).
  3. Franz, Wolfgang, 1999. "Real and monetary challenges to wage policy in Germany at the turn of the millennium: technical progress, globalization and European Monetary Union," ZEW Discussion Papers 99-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. repec:iab:iabmit:v:34:i:1:p:74-81 is not listed on IDEAS
  5. Michael Beckmann, 2007. "Age-Biased Technological and Organizational Change: Firm-Level Evidence and Management Implications," Working papers 2007/05, Faculty of Business and Economics - University of Basel.

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