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The Impact of Digital Technologies on Worker Tasks: Do Labor Policies Matter?

Author

Listed:
  • Rita K. Almeida
  • Carlos H. L, Corseuil
  • Jennifer Poole

Abstract

Between 1999 and 2006, Brazilian cities experienced strong growth in the provision of internet services, driven in part by the privatization of the telecommunications industry. A main concern of policymakers is that digital technology replaces routine, manual tasks, displacing lower-skilled workers. In Brazil, stringent labor market institutions exist to protect workers from such shocks, but by increasing labor costs, labor policy may also constrain firms from adjusting the workforce and fully benefiting from technology adoption. We show that digital technology adoption shifted the demand for skills toward an increased use of non-routine and cognitive tasks. Furthermore, and in contrast with labor policy intentions, we show that de facto labor market regulations differentially benefit the most skilled workers, particularly those workers employed in non-routine and cognitive tasks. Our results point to important changes in the future of labor markets in middle-income settings and warn for distortive and unintended consequences of labor market policies.

Suggested Citation

  • Rita K. Almeida & Carlos H. L, Corseuil & Jennifer Poole, 2017. "The Impact of Digital Technologies on Worker Tasks: Do Labor Policies Matter?," CESifo Working Paper Series 6798, CESifo.
    • Handle: RePEc:ces:ceswps:_6798
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    References listed on IDEAS

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    Cited by:

    1. Almeida,Rita Kullberg & Fernandes,Ana Margarida & Viollaz,Mariana & Almeida,Rita Kullberg & Fernandes,Ana Margarida & Viollaz,Mariana, 2017. "Does the adoption of complex software impact employment composition and the skill content of occupations ? evidence from Chilean firms," Policy Research Working Paper Series 8110, The World Bank.
    2. Stemmler, Henry, 2019. "Does automation lead to de-industrialization in emerging economies? Evidence from Brazil," University of Göttingen Working Papers in Economics 382, University of Goettingen, Department of Economics.
    3. Bennett, Fidel & Escudero, Verónica & Liepmann, Hannah & Podjanin, Ana, 2022. "Using Online Vacancy and Job Applicants' Data to Study Skills Dynamics," VfS Annual Conference 2022 (Basel): Big Data in Economics 264023, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    digital technology; skills; labor regulations;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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