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It's Not Just the ATMs: Technology, Firm Strategies, Jobs, and Earnings in Retail Banking

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  • Larry W. Hunter
  • Annette Bernhardt
  • Katherine L. Hughes
  • Eva Skuratowicz

Abstract

Using data from extensive on-site interviews conducted in 1997, 1998, and 1999, the authors examine trends in job content and earnings in selected jobs in two American banks. Firm restructuring and technological changes resulted in higher earnings for college-educated workers. The banks followed different strategies in implementing these changes for lower-skill jobs, with different effects on bank tellers in particular. The authors conclude that technological change can provide opportunities for workplace reform but does not determine its effects on jobs and earnings; these effects are contingent on managerial strategies. This focus on organizational processes and managerial strategy provides a complement to accounts of growing inequality that center solely on the role of individual skills and technological change.

Suggested Citation

  • Larry W. Hunter & Annette Bernhardt & Katherine L. Hughes & Eva Skuratowicz, 2001. "It's Not Just the ATMs: Technology, Firm Strategies, Jobs, and Earnings in Retail Banking," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 402-424, March.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2a:p:402-424
    DOI: 10.1177/001979390105400222
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    References listed on IDEAS

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    Cited by:

    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    2. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters, in: Measuring Capital in the New Economy, pages 205-236, National Bureau of Economic Research, Inc.
    3. Ann Bartel & Richard Freeman & Casey Ichniowski & Morris M. Kleiner, 2003. "Can a Work Organization Have an Attitude Problem? The Impact of Workplaces on Employee Attitudes and Economic Outcomes," NBER Working Papers 9987, National Bureau of Economic Research, Inc.
    4. Van Reenen, John, 2011. "Does competition raise productivity through improving management quality?," International Journal of Industrial Organization, Elsevier, vol. 29(3), pages 306-316, May.

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