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Technological and Organizational Change and the Careers of Workers

Author

Listed:
  • Michele Battisti
  • Christian Dustmann
  • Uta Schönberg

Abstract

This paper investigates the effects of technological and organizational change (T&O) on jobs and workers. We show that although T&O reduces firm demand for routine relative to abstract task-based jobs, affected workers do not face higher probability of non-employment or lower earnings growth than unaffected workers. Rather, firms that adopt T&O offer routine workers retraining opportunities to upgrade to more abstract jobs. Older workers form an important exception: T&O increases the risk that they permanently withdraw from the labor market and reduces their earnings, regardless of the tasks they performed in the firm prior to T&O.

Suggested Citation

  • Michele Battisti & Christian Dustmann & Uta Schönberg, 2023. "Technological and Organizational Change and the Careers of Workers," Journal of the European Economic Association, European Economic Association, vol. 21(4), pages 1551-1594.
    • Handle: RePEc:oup:jeurec:v:21:y:2023:i:4:p:1551-1594.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvad014
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    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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