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Technology and Occupations in Business Cycles

Author

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  • Valeria Cirillo

    (INAPP Rome and Institute of Economics, Scuola Superiore Sant’Anna, 56127 Pisa, Italy)

  • Mario Pianta

    (Dipartimento di Giurisprudenza, Università Roma Tre, 00154 Rome, Italy)

  • Leopoldo Nascia

    (Istituto Nazionale di Statistica (ISTAT), 00184 Rome, Italy)

Abstract

Building on studies on the impact of the Great Recession on the occupational and skill structure of employment, this article investigates developments over the last business cycle (2002–2007 and 2007–2011) in 36 manufacturing and service industries of five major European countries (Germany, France, Spain, Italy and United Kingdom). We analyse how technology, education and wages have shaped the evolution of four professional groups—Managers, Clerks, Craft and Manual workers—defined on the basis of ISCO classes. During the upswing in manufacturing industries all professional groups except managers have experienced job losses, while new jobs in services have followed a pattern of growing occupational polarization. Demand growth has a general positive effect across all occupations; new products lead to job creation in the group of managers only; wage increases slow down job creation except in the lowest occupational group. During the downswing, large job losses are concentrated in the lowest occupations and most relationships—including the role of demand and wages—break down; product innovation loses its positive impact on jobs while new processes drive restructuring and job destruction across all professional groups.

Suggested Citation

  • Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2018. "Technology and Occupations in Business Cycles," Sustainability, MDPI, vol. 10(2), pages 1-25, February.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:463-:d:131183
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    5. Filippo Bontadini & Rinaldo Evangelista & Valentina Meliciani & Maria Savona, 2021. "Asymmetries in Global Value Chain Integration, Technology and Employment Structures in Europe: Country and Sectoral Evidence," CESifo Working Paper Series 9438, CESifo.
    6. Mariacristina Piva & Marco Vivarelli, 2018. "Is Innovation Destroying Jobs? Firm-Level Evidence from the EU," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
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    10. Gupta, Ashish, 2024. "Impact of innovation on employment: A review of literature," MPRA Paper 120383, University Library of Munich, Germany.

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