IDEAS home Printed from https://ideas.repec.org/p/net/wpaper/1123.html
   My bibliography  Save this paper

ICT Use and Labor: Firm-Level Evidence from Turkey

Author

Abstract

This study analyzes the adoption and use of information communication technologies (ICTs) by firms and their effects on employment and wages. I use a confidential data set from Turkey that includes detailed surveys focused on how ICTs and the Internet are used by firms. By using the rich survey data, I create an ICT index summarizing ICT adoption and use, along with the skills of the firms, where each category takes into account many applications. The firms with different levels of ICTs differ in many characteristics. I use the generalized propensity score matching method in order to compare firms that are similar in many dimensions such as industry, location, investments, profits, trade balance, and output. I find positive effects of ICTs on employment and wages that are diminishing after a certain level of ICTs. These significant effects are due to an increase in ICT-generated jobs and not due to an increase in non-ICT jobs in the short-run. The effects on non-ICT employment become significant a couple years after investments in ICTs. This implies a change in the skill composition of the firms with higher intensity of ICT use, especially in the short run.

Suggested Citation

  • Hilal Atasoy, 2011. "ICT Use and Labor: Firm-Level Evidence from Turkey," Working Papers 11-23, NET Institute, revised Nov 2011.
  • Handle: RePEc:net:wpaper:1123
    as

    Download full text from publisher

    File URL: http://www.netinst.org/Atasoy_11_23.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Guy Michaels & Ashwini Natraj & John Van Reenen, 2010. "Has ICT Polarized Skill Demand? Evidence from Eleven Countries over 25 years," NBER Working Papers 16138, National Bureau of Economic Research, Inc.
    2. Kosuke Imai & David A. van Dyk, 2004. "Causal Inference With General Treatment Regimes: Generalizing the Propensity Score," Journal of the American Statistical Association, American Statistical Association, vol. 99, pages 854-866, January.
    3. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1055-1089.
    4. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    5. 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.
    6. David H. Autor, 2001. "Wiring the Labor Market," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 25-40, Winter.
    7. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1169-1213.
    8. Chris Forman & Avi Goldfarb & Shane Greenstein, 2012. "The Internet and Local Wages: A Puzzle," American Economic Review, American Economic Association, vol. 102(1), pages 556-575, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Information communication technologies; skilled-biased technical change; employment;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:net:wpaper:1123. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicholas Economides). General contact details of provider: http://www.NETinst.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.