How ICT shapes wages, working conditions, and job satisfaction

We study how the widespread diffusion of ICT affects wages, working conditions, and job satisfaction. We frame our empirical investigation with a model in which ICT can improve both wages and working conditions by increasing firms' output. Using French matched employer-employee data and an instrumental variable approach that is motivated by the model, we find that ICT diffusion in 2013-2019 has been beneficial to workers, who experienced both higher wages and better working conditions, particularly through greater flexibility, physical comfort, and safety. In contrast, ICT use has also increased psychological stress and work intensity. These effects vary across workers, firms, occupations and sectors, depending on their characteristics. Despite overall improvements in wages and working conditions, we estimate only modest positive effects of ICT use on job satisfaction. We discuss potential explanations for this finding.