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Are ICT Displacing Workers? Evidence from Seven European Countries

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Abstract

This paper examines whether ICT substitute labour and reduce the demand for labour. We used firm-level comparable data separately for firms in manufacturing, services and ICT-producing sectors from seven European countries. We adopted a common methodology and applied it to a unique dataset provided by the ESSLait Project on Linking Microdata. We controlled for unobservable time-invariant firm-specific effects and we found no evidence of a negative relationship between intensity of ICT use and employment growth. We read this as an indication that ICT use is not reducing employment among ICT using firms.

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  • Smaranda Pantea & Federico Biagi & Anna Sabadash, 2014. "Are ICT Displacing Workers? Evidence from Seven European Countries," JRC Working Papers on Digital Economy 2014-07, Joint Research Centre.
    • Handle: RePEc:ipt:decwpa:2014-07
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    Cited by:

    1. Rauf Gönenç & Béatrice Guérard, 2017. "Austria’s digital transition: The diffusion challenge," OECD Economics Department Working Papers 1430, OECD Publishing.
    2. Biagi, Federico & Falk, Martin, 2017. "The impact of ICT and e-commerce on employment in Europe," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 1-18.
    3. Yilmaz Kiliçaslan & Ünal Töngür, 2017. "Information and Communication Technologies and Employment Generation in Turkish Manufacturing Industry," Working Papers 1120, Economic Research Forum, revised 07 2017.
    4. Dachs, Bernhard, 2017. "The impact of new technologies on the labour market and the social economy," MPRA Paper 90519, University Library of Munich, Germany.
    5. Flavio Calvino & Maria Enrica Virgillito, 2018. "The Innovation†Employment Nexus: A Critical Survey Of Theory And Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 83-117, February.
    6. 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.
    7. Biagi, Federico & Falk, Martin, 2017. "The Impact of ICT and E-Commerce Activities on Employment in Europe," Ratio Working Papers 285, The Ratio Institute.
    8. Pouliakas, Konstantinos, 2018. "Determinants of Automation Risk in the EU Labour Market: A Skills-Needs Approach," IZA Discussion Papers 11829, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Labour Demand; Technological Change; ICT;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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