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Skilled Labor Supply, IT-Based Technical Change and Job Instability

  • Behaghel, Luc

    ()

    (Paris School of Economics)

  • Moschion, Julie

    ()

    (Melbourne Institute of Applied Economic and Social Research)

We provide empirical evidence on the impact of IT diffusion on the stability of employment relationships. We document the evolution of different components of job instability over a panel of 348 local labor markets in France, from the mid-1970s to the early 2000s. Although workers in more educated local labor markets adopt IT faster, they do not experience any increase in job instability. More specifically, we find no evidence that the diffusion of IT increases job-to-job transitions, and we find that it tends to reduce transitions to non-employment among high-school dropouts. Overall, the evidence goes against the view that the diffusion of IT has spurred job instability. Combining local labor market variations with firm data, we argue that these findings can be explained by French firms’ strong reliance on training and internal promotion strategies in order to meet the new skills requirement associated with IT diffusion.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6839.

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Length: 47 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6839
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  1. Philippe Azkenazy & Eva Moreno, 2004. "The impact of technological and organizational changes on labor flows. Evidence on French establishments," DELTA Working Papers 2004-25, DELTA (Ecole normale supérieure).
  2. Bauer, Thomas & Bender, Stefan, 2002. "Technological Change, Organizational Change, and Job Turnover," CEPR Discussion Papers 3534, C.E.P.R. Discussion Papers.
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  5. Jacob Mincer, 1989. "Human Capital Responses to Technological Change in the Labor Market," NBER Working Papers 3207, National Bureau of Economic Research, Inc.
  6. David Neumark & Deborah Reed, 2002. "Employment Relationships in the New Economy," NBER Working Papers 8910, National Bureau of Economic Research, Inc.
  7. Patrick Aubert & Eve Caroli & Muriel Roger, 2006. "New technologies, organisation and age: firm-level evidence," Economic Journal, Royal Economic Society, vol. 116(509), pages F73-F93, 02.
  8. Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
  9. Paul Beaudry & Mark Doms & Ethan Lewis, 2006. "Endogenous skill bias in technology adoption: city-level evidence from the IT revolution," Working Paper Series 2006-24, Federal Reserve Bank of San Francisco.
  10. Danielle Venn, 2009. "Legislation, Collective Bargaining and Enforcement: Updating the OECD Employment Protection Indicators," OECD Social, Employment and Migration Working Papers 89, OECD Publishing.
  11. Robert G. Valletta, 1998. "Declining job security," Working Papers in Applied Economic Theory 98-02, Federal Reserve Bank of San Francisco.
  12. Givord, Pauline & Maurin, Eric, 2004. "Changes in job security and their causes: An empirical analysis for France, 1982-2002," European Economic Review, Elsevier, vol. 48(3), pages 595-615, June.
  13. Orley C. Ashenfelter & Henry Farber & Michael R Ransom, 2010. "Labor Market Monopsony," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 203-210, 04.
  14. Luc Behaghel & Eve Caroli & Emmanuelle Walkowiak, 2012. "Information and communication technologies and skill upgrading: the role of internal vs external labour markets," Oxford Economic Papers, Oxford University Press, vol. 64(3), pages 490-517, July.
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