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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, Open Access Journal, 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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    Cited by:

    1. Sara Amoroso & Pietro Moncada-Paternò-Castello, 2018. "Inward Greenfield FDI and Patterns of Job Polarization," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-20, April.
    2. Mario Pianta, 2018. "Technology and Employment: Twelve Stylised Facts for the Digital Age," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 189-225, June.
    3. Mariacristina Piva & Marco Vivarelli, 2018. "Is Innovation Destroying Jobs? Firm-Level Evidence from the EU," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-16, April.
    4. Luigi Aldieri & Concetto Paolo Vinci, 2018. "Green Economy and Sustainable Development: The Economic Impact of Innovation on Employment," Sustainability, MDPI, Open Access Journal, vol. 10(10), pages 1-11, October.
    5. Vicente Salas-Fumás & Javier Ortiz, 2019. "Innovations’ Success and Failure in the Business Cycle," Sustainability, MDPI, Open Access Journal, vol. 11(15), pages 1-22, August.
    6. Valeria Cirillo & Rinaldo Evangelista & Dario Guarascio & Matteo Sostero, 2019. "Digitalization, routineness and employment: An exploration on Italian task-based data," LEM Papers Series 2019/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    More about this item

    Keywords

    occupations; innovation; technology; business cycles;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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