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The employment effects of ICT investment: Evidence from the U.S. Commuting Zones

Author

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  • Zou, Yanchi
  • Li, Kun
  • He, Lilong
  • Guo, Jiapei

Abstract

This paper estimates changes in ICT investment across Commuting Zones (CZs) in the United States from 2008 to 2019 and uses the Bartik instrumental variable method to assess the impact of ICT investment on local employment. The results indicate that ICT investment has a modest yet significantly positive effect on employment. The employment effects vary by industry and ICT type, with notably stronger positive effects for intellectual property-intensive (software-related) ICT investments. Furthermore, ICT investment has the largest positive employment effects in CZs with greater exposure to non-routine tasks, while in CZs with higher exposure to routine tasks, ICT investment exerts negative employment effects. These findings provide new insights into the employment effects of ICT investment in the United States over the past 15 years.

Suggested Citation

  • Zou, Yanchi & Li, Kun & He, Lilong & Guo, Jiapei, 2025. "The employment effects of ICT investment: Evidence from the U.S. Commuting Zones," Economic Modelling, Elsevier, vol. 151(C).
    • Handle: RePEc:eee:ecmode:v:151:y:2025:i:c:s0264999325002135
    DOI: 10.1016/j.econmod.2025.107218
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    Keywords

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    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
    • 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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