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In brief - New technology: who wins, who loses?

Author

Listed:
  • John Van Reenen
  • Nicholas Bloom
  • Luis Garicano
  • Raffaella Sadun

Abstract

Technology has transformed the once powerful office of ambassador into a glorified sales position, while nurses, teaching assistants and medical technicians all benefit from the ICT revolution. According to an empirical study by Professor John Van Reenen and colleagues, these contrasting fortunes arise from the fact that different technologies can have very different effects on the labour market. Information technologies, which provide access to stored data, tend to empower frontline workers, while communications technologies like email tend to increase the centralisation of firms, putting more power in the hands of senior managers in corporate headquarters and reducing their employees' personal autonomy.

Suggested Citation

  • John Van Reenen & Nicholas Bloom & Luis Garicano & Raffaella Sadun, 2014. "In brief - New technology: who wins, who loses?," CentrePiece - The magazine for economic performance 418, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepcnp:418
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    File URL: https://cep.lse.ac.uk/pubs/download/cp418.pdf
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    More about this item

    Keywords

    Organisation; delegation; information technology; communication technology; the theory of the firm;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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