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New technologies and the labor market

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  • Atalay, Enghin
  • Phongthiengtham, Phai
  • Sotelo, Sebastian
  • Tannenbaum, Daniel

Abstract

Using newspaper job ad text from 1960 to 2000, we measure job tasks and the adoption of individual information and communication technologies (ICTs). Most new technologies are associated with an increase in nonroutine analytic tasks, and a decrease in nonroutine interactive, routine cognitive, and routine manual tasks. We embed these interactions in a quantitative model of worker sorting across occupations and technology adoption. Through the lens of the model, the arrival of ICTs broadly shifts workers away from routine tasks, which increases the college premium. A notable exception is the Microsoft Office suite, which has the opposite set of effects.

Suggested Citation

  • Atalay, Enghin & Phongthiengtham, Phai & Sotelo, Sebastian & Tannenbaum, Daniel, 2018. "New technologies and the labor market," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 48-67.
  • Handle: RePEc:eee:moneco:v:97:y:2018:i:c:p:48-67
    DOI: 10.1016/j.jmoneco.2018.05.008
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    Cited by:

    1. Erling Barth & James C. Davis & Richard B. Freeman & Kristina McElheran, 2020. "Twisting the Demand Curve: Digitalization and the Older Workforce," Working Papers 20-37, Center for Economic Studies, U.S. Census Bureau.
    2. Enghin Atalay & sarada sarada, 2019. "Emerging and Disappearing Work, Thriving and Declining Firms," 2019 Meeting Papers 484, Society for Economic Dynamics.
    3. Jaimovich, Nir & Saporta-Eksten, Itay & Siu, Henry & Yedid-Levi, Yaniv, 2021. "The macroeconomics of automation: Data, theory, and policy analysis," Journal of Monetary Economics, Elsevier, vol. 122(C), pages 1-16.
    4. Stähler, Nikolai, 2021. "The Impact of Aging and Automation on the Macroeconomy and Inequality," Journal of Macroeconomics, Elsevier, vol. 67(C).
    5. Noemi Oggero & Maria Cristina Rossi & Elisa Ughetto, 2020. "Entrepreneurial spirits in women and men. The role of financial literacy and digital skills," Small Business Economics, Springer, vol. 55(2), pages 313-327, August.
    6. Alfonso Cebreros & Aldo Heffner-Rodríguez & René Livas & Daniela Puggioni, 2020. "Automation Technologies and Employment at Risk: The Case of Mexico," Working Papers 2020-04, Banco de México.
    7. Marchand, Joseph, 2020. "Routine Tasks were Demanded from Workers during an Energy Boom," Working Papers 2020-8, University of Alberta, Department of Economics.
    8. Goos, Maarten & Rademakers, Emilie & Röttger, Ronja, 2021. "Routine-Biased technical change: Individual-Level evidence from a plant closure," Research Policy, Elsevier, vol. 50(7).
    9. Enghin Atalay & Phai Phongthiengtham & Sebastian Sotelo & Daniel Tannenbaum, 2020. "The Evolution of Work in the United States," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 1-34, April.
    10. Fabienne Kiener & Ann-Sophie Gnehm & Simon Clematide & Uschi Backes-Gellner, 2019. "Different Types of IT Skills in Occupational Training Curricula and Labor Market Outcomes," Economics of Education Working Paper Series 0159, University of Zurich, Department of Business Administration (IBW).
    11. Junming Huang & Gavin G. Cook & Yu Xie, 2021. "Large-scale quantitative evidence of media impact on public opinion toward China," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-8, December.
    12. Tobias Schultheiss & Curdin Pfister & Ann-Sophie Gnehm & Uschi Backes-Gellner, 2018. "Tertiary education expansion and task demand: Does a rising tide lift all boats?," Economics of Education Working Paper Series 0154, University of Zurich, Department of Business Administration (IBW), revised Jan 2021.
    13. Gueyon Kim & Dohyeon Lee, 2020. "Offshoring and Segregation by Skill: Theory and Evidence," Working Papers 2020-073, Human Capital and Economic Opportunity Working Group.
    14. Tobias Schultheiss & Uschi Backes-Gellner, 2020. "Updated education curricula and accelerated technology diffusion in the workplace: Micro-evidence on the race between education and technology," Economics of Education Working Paper Series 0173, University of Zurich, Department of Business Administration (IBW), revised Feb 2021.
    15. Enghin Atalay & Sebastian Sotelo & Daniel Tannenbaum, 2021. "The Geography of Job Tasks," Working Papers 682, Research Seminar in International Economics, University of Michigan.

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    More about this item

    Keywords

    Income inequality; Information and communication technologies; Occupational choice; Routine and nonroutine tasks; Technological change;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • 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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