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Contribution of ICT on Labor Market Polarization: an Evolutionary Approach

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  • Benjamin David

Abstract

This paper analyses the role of Information and Communication Technologies (ICT) on the job market polarization. We rely on an evolutionary framework by applying a “distance from mean approach”. Using data for 8 industrialized economies, we account for probable heterogeneous and timevarying effects through the estimation of a semi parametric smooth coefficient model. Our results show a significant contribution of ICT on polarization dynamics with some differences between countries and industries. We also find evidence that diffusion of ICT is initially accompanied by a Skill Bias Technological Change (SBTC), then contributing to job market polarization. Finally, our findings highlight a progressive weakening of the positive link between ICT diffusion and the increasing demand for high-skilled workers over time.

Suggested Citation

  • Benjamin David, 2014. "Contribution of ICT on Labor Market Polarization: an Evolutionary Approach," EconomiX Working Papers 2014-25, University of Paris Nanterre, EconomiX.
  • Handle: RePEc:drm:wpaper:2014-25
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    More about this item

    Keywords

    ICT; Evolutionary economics; Polarization of labor market; Semiparametric Smooth Coefficient Model.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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