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The distinct effects of information technologies and communication technologies on the age-skill composition of labour demand

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  • Sotiris Blanas

    () (National Bank of Belgium)

Abstract

This paper is the first to study the distinct effects of Information Technologies (IT) and Communication Technologies (CT) on the skill, age, and age-skill composition of labour demand. The analysis is conducted on a sample comprising 10 developed countries, 30 industries covering the largest part of the economy, and the period 1982-2005. I find that IT intensity increases the relative demands for the high-skilled, low-skilled and oldest workers, while it decreases the relative demands for the medium-skilled and younger workers. Also, IT intensity increases the relative demands for the high-skilled and low-skilled of all age profiles, while it decreases the relative demands for the medium-skilled of all age profiles. CT intensity exerts opposite effects. Consistent with knowledge-based hierarchy theories highlighting the organisational aspect of the adoption of IT and CT by firms, the empowerment of agents at lower and higher levels of the hierarchy induced by IT and CT, respectively, rationalise these findings. I also find that the aforementioned effects operate mostly as of 1990, when the advancement rates of IT and CT were even higher than in the 1980s. Although a clear pattern of disproportionate effects across sectors is not identified, such a pattern across countries does exist: the inequalities generated by the two types of technologies are mitigated by higher union density.

Suggested Citation

  • Sotiris Blanas, 2019. "The distinct effects of information technologies and communication technologies on the age-skill composition of labour demand," Working Paper Research 365, National Bank of Belgium.
  • Handle: RePEc:nbb:reswpp:201901-365
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    File URL: https://www.nbb.be/doc/oc/repec/reswpp/wp365en.pdf
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    References listed on IDEAS

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    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
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    3. 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.
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    5. Rosario Crinò, 2012. "Service Offshoring and the Skill Composition of Labour Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(1), pages 20-57, February.
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    8. Alexander Hijzen & Holger Görg & Robert C. Hine, 2005. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," Economic Journal, Royal Economic Society, vol. 115(506), pages 860-878, October.
    9. repec:dau:papers:123456789/7243 is not listed on IDEAS
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    More about this item

    Keywords

    Information Technologies; Communication Technologies; relative labour demand; ageskill profile;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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