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Monitoring, Information Technology and the Labor Share

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  • Dorothee Schneider

Abstract

This paper assesses empirically the hypotheses by Bental and Demougin (2010) that innovations in ICT (Information and Communication Technology) reduce the labor share in OECD countries by improving the monitoring technology. In a first step, I show that data trends for the labor share, wages in efficiency units, and labor in efficiency units over capital can be matched by a simulation of the model of Bental and Demougin (2010). In a second approach, I confirm increasing monitoring of workers using micro data for Germany. I argue that ICT influences labor not only through substitutability of labor with ICT and foreign work, but also through to lowering rents of workers as monitoring technology improves.

Suggested Citation

  • Dorothee Schneider, 2011. "Monitoring, Information Technology and the Labor Share," SFB 649 Discussion Papers SFB649DP2011-066, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    • Handle: RePEc:hum:wpaper:sfb649dp2011-066
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    10. Dorothee Schneider, 2011. "Bargaining, Openness, and the Labor Share," SFB 649 Discussion Papers SFB649DP2011-068, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
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    Cited by:

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    3. Nikolaus Hautsch & Julia Schaumburg & Melanie Schienle, 2015. "Financial Network Systemic Risk Contributions," Review of Finance, European Finance Association, vol. 19(2), pages 685-738.
    4. Patrick Cheridito & Ulrich Horst & Michael Kupper & Traian A. Pirvu, 2011. "Equilibrium Pricing in Incomplete Markets under Translation Invariant Preferences," SFB 649 Discussion Papers SFB649DP2011-083, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    5. Philippe Askenazy, 2022. "Worker surveillance capital, labour share, and productivity [Workplace surveillance: an overview]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 85-93.
    6. Alena MyÅ¡iÄ ková & Song Song & Piotr Majer & Peter N.C. Mohr & Hauke R. Heekeren & Wolfgang K. Härdle, 2011. "Risk Patterns and Correlated Brain Activities. Multidimensional statistical analysis of fMRI data with application to risk patterns," SFB 649 Discussion Papers SFB649DP2011-085, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    7. Zita Tamasauskiene & Janina Seputiene & Rasa Balvociute & Daiva Berzinskiene-Juozainiene, 2017. "The impact of wage share on domestic demand in the European Union," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 115-132, April.
    8. Dorothee Schneider, 2011. "The Labor Share: A Review of Theory and Evidence," SFB 649 Discussion Papers SFB649DP2011-069, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    9. Philippe Askenazy, 2020. "Worker surveillance capital, labour share and productivity [Surveillance des travailleurs, partage de valeur ajoutée et productivité]," Working Papers hal-02877703, HAL.
    10. Gregor Heyne & Michael Kupper & Christoph Mainberger, 2011. "Minimal Supersolutions of BSDEs with Lower Semicontinuous Generators," SFB 649 Discussion Papers SFB649DP2011-067, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    11. Ulrich Horst & Michael Kupper & Andrea Macrina & Christoph Mainberger, 2011. "Continuous Equilibrium under Base Preferences and Attainable Initial Endowments," SFB 649 Discussion Papers SFB649DP2011-082, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.

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    More about this item

    Keywords

    Labor Shares; Bargaining; Monitoring;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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