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The Impact of ICT and E-Commerce Activities on Employment in Europe

Author

Listed:
  • Biagi, Federico

    (European Commission, Joint Research Centre (JRC), Directorate Growth & Innovation, Human Capital and Employment Unit and University of Padua, Italy)

  • Falk, Martin

    (Austrian Institute of Economic Research (WIFO))

Abstract

This study presents new empirical evidence regarding the impact of ICT/e-commerce activities on labour demand. The data is based on new and unique data for 10 European countries for the period 2002-2010. A key feature of the empirical analysis is the use of several types of advanced ICT activities, such as enterprise resource planning (ERP) systems,mobile internet access, and e-commerce practices. The main result of the study is that the increase in ICT/e-commerce activities over time has not led to a decline in jobs. This holds true for both manufacturing and service industries, as well as for SMEs and large firms. For ERP systems and websites, there is some evidence of positive effects. These findings do not support the hypothesis that ICT utilization is leading to labour substitution overall. In fact, ICT activities appear to be rather neutral to employment. The results are robust not only to the model specification, but also the estimation method applied.

Suggested Citation

  • Biagi, Federico & Falk, Martin, 2017. "The Impact of ICT and E-Commerce Activities on Employment in Europe," Ratio Working Papers 285, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0285
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    References listed on IDEAS

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    Cited by:

    1. Tamara Bińczak & Filip Kaczmarek & Jakub Rybacki, 2018. "Determinants of E-Commerce Turnover in Europe: Consumer Protection Matters," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 125-141.
    2. IWAMOTO Koichi & TANOUE Yuta, 2018. "Digitization, Computerization, Networking, Automation, and the Future of Jobs in Japan," Policy Discussion Papers 18013, Research Institute of Economy, Trade and Industry (RIETI).
    3. Martin Falk & Eva Hagsten, 2018. "Employment impacts of market novelty sales: evidence for nine European Countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(2), pages 119-137, June.
    4. Judit Oláh & Nicodemus Kitukutha & Hossam Haddad & Miklós Pakurár & Domicián Máté & József Popp, 2018. "Achieving Sustainable E-Commerce in Environmental, Social and Economic Dimensions by Taking Possible Trade-Offs," Sustainability, MDPI, vol. 11(1), pages 1-22, December.
    5. Maarten Goos & Melanie Arntz & Ulrich Zierahn & Terry Gregory & Stephanie Carretero Gomez & Ignacio Gonzalez Vazquez & Koen Jonkers, 2019. "The Impact of Technological Innovation on the Future of Work," JRC Working Papers on Labour, Education and Technology 2019-03, Joint Research Centre.
    6. Muhammad Khalid Anser & Zahid Yousaf & Muhammad Usman & Seemab Yousaf, 2020. "Towards Strategic Business Performance of the Hospitality Sector: Nexus of ICT, E-Marketing and Organizational Readiness," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    7. Mariana Kaneva, 2019. "Broadband and e-Commerce in the Balkans - Econometric Analysis," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 8(2), pages 100-109, August.
    8. Hidemichi Fujii & Akihiko Shinozaki & Shigemi Kagawa & Shunsuke Managi, 2019. "How Does Information and Communication Technology Capital Affect Productivity in the Energy Sector? New Evidence from 14 Countries, Considering the Transition to Renewable Energy Systems," Energies, MDPI, vol. 12(9), pages 1-16, May.

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    More about this item

    Keywords

    labour demand; information and communication technologies; e-commerce activities;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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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