IDEAS home Printed from https://ideas.repec.org/p/fbk/wpaper/2025-04.html

Returns to ICT skills in European labour markets, trade unions and contractual cleavages

Author

Listed:
  • Alessio Tomelleri
  • Giorgio Cutuli
  • Andrea Signoretti

Abstract

In the last decades, socio-economic literature has paid considerable attention to the distribution of costs and benefits of technological introduction and ICT diffusion for different segments of the workforce, mainly across distinct occupational or educational groups. This study explores how wage returns to ICT use differ between temporary and permanent workers focusing on the role of trade unions in mitigating this contractual divide. Using recent European microdata from the ESJ2 survey (CEDEFOP 2022), we examine whether union membership enhances wage outcomes for temporary workers using digital skills, and how this effect varies depending on national patterns of union representation. By combining individual-level information with country-level indicators of trade union density across contractual types, we assess how micro and macro level dynamics shape wage parity in ICT returns. Overall, our findings reveal a clear penalty for non-unionised temporary workers. The protective role of trade union membership is nonetheless significant only in national contexts characterized by similar level of trade union density across contractual groups. These results underscore both the conditionalities and potentials of industrial relations in fostering inclusive labour markets amid technological change.

Suggested Citation

  • Alessio Tomelleri & Giorgio Cutuli & Andrea Signoretti, 2025. "Returns to ICT skills in European labour markets, trade unions and contractual cleavages," FBK-IRVAPP Working Papers 2025-04, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
  • Handle: RePEc:fbk:wpaper:2025-04
    as

    Download full text from publisher

    File URL: https://irvapp.fbk.eu/wp-content/uploads/2025/08/WP_IRVAPP_2025_4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Laura Carver & Virginia Doellgast, 2021. "Dualism or solidarity? Conditions for union success in regulating precarious work," European Journal of Industrial Relations, , vol. 27(4), pages 367-385, December.
    2. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    3. Gilbert Cette & Sandra Nevoux & Loriane Py, 2022. "The impact of ICTs and digitalization on productivity and labor share: evidence from French firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(8), pages 669-692, November.
    4. Andrea Garnero, 2021. "The impact of collective bargaining on employment and wage inequality: Evidence from a new taxonomy of bargaining systems," European Journal of Industrial Relations, , vol. 27(2), pages 185-202, June.
    5. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    6. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2018. "Employment Protection, Temporary Contracts and Firm-Provided Training: Evidence from Italy," IZA Discussion Papers 11339, IZA Network @ LISER.
    7. Brad Hershbein & Lisa B. Kahn, 2018. "Do Recessions Accelerate Routine-Biased Technological Change? Evidence from Vacancy Postings," American Economic Review, American Economic Association, vol. 108(7), pages 1737-1772, July.
    8. Saverio Minardi & Carla Hornberg & Paolo Barbieri & Heike Solga, 2023. "The link between computer use and job satisfaction: The mediating role of job tasks and task discretion," British Journal of Industrial Relations, London School of Economics, vol. 61(4), pages 796-831, December.
    9. Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum & Nicole Woessner, 2021. "The Adjustment of Labor Markets to Robots [“Skills, Tasks and Technologies: Implications for Employment and Earnings]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 3104-3153.
    10. Ferreira, Maria & de Grip, Andries & van der Velden, Rolf, 2018. "Does informal learning at work differ between temporary and permanent workers? Evidence from 20 OECD countries," Labour Economics, Elsevier, vol. 55(C), pages 18-40.
    11. Thelen,Kathleen, 2014. "Varieties of Liberalization and the New Politics of Social Solidarity," Cambridge Books, Cambridge University Press, number 9781107679566, June.
    12. Armanda Cetrulo & Valeria Cirillo & Dario Guarascio, 2019. "Weaker jobs, weaker innovation. Exploring the effects of temporary employment on new products," Applied Economics, Taylor & Francis Journals, vol. 51(59), pages 6350-6375, December.
    13. Guglielmo Meardi & Melanie Simms & Duncan Adam, 2021. "Trade unions and precariat in Europe: Representative claims," European Journal of Industrial Relations, , vol. 27(1), pages 41-58, March.
    14. Didier Fouarge & Andries Grip & Wendy Smits & Robert Vries, 2012. "Flexible Contracts and Human Capital Investments," De Economist, Springer, vol. 160(2), pages 177-195, June.
    15. Kostøl, Fredrik B. & Svarstad, Elin, 2023. "Trade Unions and the Process of Technological Change," Labour Economics, Elsevier, vol. 84(C).
    16. Henri Haapanala & Ive Marx & Zachary Parolin, 2023. "Robots and unions: The moderating effect of organized labour on technological unemployment," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 827-852, August.
    17. Thelen,Kathleen, 2014. "Varieties of Liberalization and the New Politics of Social Solidarity," Cambridge Books, Cambridge University Press, number 9781107053168, June.
    18. Giorgio Cutuli & Alessio Tomelleri, 2023. "Returns to digital skills use, temporary employment, and trade unions in European labour markets," European Journal of Industrial Relations, , vol. 29(4), pages 393-413, December.
    19. Lindvall, Johannes & Rueda, David, 2014. "The Insider–Outsider Dilemma," British Journal of Political Science, Cambridge University Press, vol. 44(2), pages 460-475, April.
    20. Meyer, Brett & Biegert, Thomas, 2019. "The conditional effect of technological change on collective bargaining coverage," LSE Research Online Documents on Economics 100305, London School of Economics and Political Science, LSE Library.
    21. de Vries, Gaaitzen J. & Gentile, Elisabetta & Miroudot, Sébastien & Wacker, Konstantin M., 2020. "The rise of robots and the fall of routine jobs," Labour Economics, Elsevier, vol. 66(C).
    22. David Klenert & Enrique Fernández-Macías & José-Ignacio Antón, 2023. "Do robots really destroy jobs? Evidence from Europe," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(1), pages 280-316, February.
    23. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giorgio Cutuli & Alessio Tomelleri, 2023. "Returns to digital skills use, temporary employment, and trade unions in European labour markets," European Journal of Industrial Relations, , vol. 29(4), pages 393-413, December.
    2. Giorgio Cutuli & Alessio Tomelleri, 2023. "Returns to ICT Skills Use and Labour Market Institutions," FBK-IRVAPP Working Papers 2023-02, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    3. Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio & Traverso, Silvio & Tundis, Enrico, 2025. "What workers and robots do: An activity-based analysis of the impact of robotization on changes in local employment," Research Policy, Elsevier, vol. 54(1).
    4. Jannes ten Berge & Fabian Dekker, 2025. "New technology and workers’ perceived impact on job quality: Does labor organization matter?," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 46(2), pages 619-654, May.
    5. Hyejin Kim, 2024. "The impact of robots on labor demand: evidence from job vacancy data in South Korea," Empirical Economics, Springer, vol. 67(3), pages 1185-1209, September.
    6. Fredrik B. Kostøl, 2024. "Do unions increase participation in further education?," British Journal of Industrial Relations, London School of Economics, vol. 62(3), pages 614-639, September.
    7. Fierro, Luca Eduardo & Caiani, Alessandro & Russo, Alberto, 2022. "Automation, Job Polarisation, and Structural Change," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 499-535.
    8. Paulo Marques & Chiara Benassi & Ana Costa & André Pinto, 2025. "Under which conditions do unions succeed in pushing back dualization? A configurational study of collective agreements in Portugal," British Journal of Industrial Relations, London School of Economics, vol. 63(1), pages 133-155, March.
    9. Jannes ten Berge & Zoltán Lippényi, 2026. "Firm-level technology implementation and finding a new job: The moderating role of industry unionization," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 47(1), pages 271-303, February.
    10. Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio & Traverso, Silvio & Tundis, Enrico, 2021. "Stop worrying and love the robot: An activity-based approach to assess the impact of robotization on employment dynamics," GLO Discussion Paper Series 802, Global Labor Organization (GLO).
    11. Valentina Gonzalez‐Rostani, 2024. "Engaged robots, disengaged workers: Automation and political alienation," Economics and Politics, Wiley Blackwell, vol. 36(3), pages 1703-1730, November.
    12. Hang, Leiming & Lu, Wei & Ge, Xiaowei & Ye, Bin & Zhao, Zhiqi & Cheng, Fangfang, 2024. "R&D innovation, industrial evolution and the labor skill structure in China manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    13. Michael Otto & Martin Abraham, 2025. "Robotisation and Workforce Dynamics: Analysing Employment and Wage Effects within Manufacturing Establishments," Work, Employment & Society, British Sociological Association, vol. 39(6), pages 1486-1512, December.
    14. Battisti & M. Del Gatto & A. Gravina & C. Parmeter, 2021. "Robots versus labor skills: a complementarity/substitutability analysis," Working Paper CRENoS 202104, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    15. Włoch, Renata & Śledziewska, Katarzyna & Rożynek, Satia, 2025. "Who's afraid of automation? Examining determinants of fear of automation in six European countries," Technology in Society, Elsevier, vol. 81(C).
    16. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2025. "Robots and wages: A meta-analysis," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 541-567.
    17. Deng, Liuchun & Müller, Steffen & Plümpe, Verena & Stegmaier, Jens, 2024. "Robots, occupations, and worker age: A production-unit analysis of employment," European Economic Review, Elsevier, vol. 170(C).
    18. Mauro Caselli & Edwin Fourrier-Nicolai & Andrea Fracasso & Sergio Scicchitano, 2024. "Digital Technologies and Firms’ Employment and Training," CESifo Working Paper Series 11056, CESifo.
    19. Du, Jun-Hong & Tian, Meng-Nan & Yang, Zhi-Liang, 2026. "How can robots coexist with labor employment?—Empirical evidence based on matching data of Chinese industrial robots," Technology in Society, Elsevier, vol. 85(C).
    20. Henri Haapanala & Ive Marx & Zachary Parolin, 2023. "Robots and unions: The moderating effect of organized labour on technological unemployment," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 827-852, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fbk:wpaper:2025-04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alessio Tomelleri or Daniela Anesi (email available below). General contact details of provider: https://edirc.repec.org/data/irvapit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.