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Neither Left-Behind nor Superstar: Ordinary Winners of Digitalization at the Ballot Box

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  • Aina Gallego
  • Thomas Kurer
  • Nikolas Schöll

Abstract

The nascent literature on the political consequences of technological change studies either left behind voters or successful technology entrepreneurs ("superstars"). However, it neglects the large share of skilledworkers who benefit from limited but steady economic improvements in the knowledge economy. This paper studies how workplace digitalization affects political preferences among the entire active labor force by combining individual-level panel data from the United Kingdom with industry-level data on ICT capital stocks between 1997-2017. We first demonstrate that digitalization was economically beneficial for workers with middle and high levels of education. We then show that growth in digitalization increased support for the Conservative Party, the incumbent party, and voter turnout among beneficiaries of economic change. Our results hold in an instrumental variable analysis and multiple robustness checks. While digitalization undoubtedly produces losers (along with some superstars), ordinary winners of digitalization are an important stabilizing force content with the political status quo.

Suggested Citation

  • Aina Gallego & Thomas Kurer & Nikolas Schöll, 2018. "Neither Left-Behind nor Superstar: Ordinary Winners of Digitalization at the Ballot Box," Working Papers 1063, Barcelona School of Economics.
  • Handle: RePEc:bge:wpaper:1063
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    More about this item

    Keywords

    technological change; digitalization; political preferences; Voters;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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