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The effect of ICT adoption on labour demand: A cross‐region comparison

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  • Mohamed Goaied
  • Seifallah Sassi

Abstract

This paper assesses the information and communications technologies (ICT)‐labour relationship from a macroeconomic perspective to clarify some ambiguity regarding the overall employment effect of ICT adoption in the short and long term. For that, we use two panel data techniques, generalized method of moments (GMM) and the pooled mean group model (PMG), on a large sample of developing and developed countries, covering five regions, during the period from 1990–2015. Our findings provide evidence that the overall impact of ICT adoption is labour saving in the short term, and this adverse effect still carries on in the long run, inducing higher structural unemployment. The displacement of the labour market induced by ICT adoption is real, persistent, and universal. Policy‐makers should facilitate the transition of labour from old to new jobs and reduce the period of adaptability. Este artículo evalúa la relación entre las tecnologías de la información y las comunicaciones (TIC) y la mano de obra desde una perspectiva macroeconómica, con el fin de aclarar cierta ambigüedad en relación con el efecto general en el empleo de la adopción de las TIC a corto y largo plazo. Para ello, se utilizaron dos técnicas de datos de panel, a saber el método generalizado de momentos (MGM) y el modelo de estimador de medias agrupadas (PMG, por sus siglas en inglés), en una amplia muestra de países en desarrollo y desarrollados que abarcó cinco regiones durante el período 1990–‐2015. Los resultados proporcionan evidencia de que el impacto en general de la adopción de las TIC es el ahorro de mano de obra a corto plazo, y que este efecto adverso persiste a largo plazo, lo que induce un mayor desempleo estructural. El desplazamiento del mercado laboral inducido por la adopción de las TIC es real, persistente y universal. Los responsables políticos deberían facilitar la transición de la mano de obra de los empleos antiguos a los nuevos y reducir el período de adaptabilidad. 本稿では、情報通信技術 (information and communications technologies: ICT)産業における労使関係を、マクロ経済的観点から評価し、通信情報技術の導入による、短期的および長期的な雇用効果全体に関する不明確な点を明らかにする。そこで本稿では、一般化モーメント法とプール平均グループ (Pooled Mean Group)モデルの、2つのパネルデータ分析方法を、発展途上国および先進国の5つの地域における、1990年~2015年の大規模サンプルデータに適用する。知見から、ICTの導入による全体的なインパクトは、短期的な省力化につながるが、長期的にはその悪影響が持続し、より深刻な構造的失業を招く。ICTの導入によって引き起こされる労働市場の置換は、現実的で、持続的であり、普遍的なものである。政策立案者は古い仕事から新しい仕事への労働力の移行を促進し、適応期間を短くするべきである。

Suggested Citation

  • Mohamed Goaied & Seifallah Sassi, 2019. "The effect of ICT adoption on labour demand: A cross‐region comparison," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 3-16, February.
  • Handle: RePEc:bla:presci:v:98:y:2019:i:1:p:3-16
    DOI: 10.1111/pirs.12321
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    Cited by:

    1. Talla Fokam, Dieu Ne Dort & Kamga, Benjamin Fomba & Nchofoung, Tii N., 2023. "Information and communication technologies and employment in developing countries: Effects and transmission channels," Telecommunications Policy, Elsevier, vol. 47(8).

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