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Digital technology adoption, productivity gains in adopting firms and sectoral spill-overs: Firm-level evidence from Estonia

Author

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  • Natia Mosiashvili
  • Jon Pareliussen

Abstract

With a newly constructed firm-level dataset combining various survey- and registry data from Statistics Estonia, this paper sheds new light on the labour productivity premium from adopting digital technologies and boosting digital skill use. The productivity premium is decomposed into a direct effect benefitting the firms actually increasing their digital intensity, and an indirect effect of belonging to a sector with high digital intensity. The firm-level productivity premium of being an adopting firm is consistently positive and sizeable across different digital technologies and measures of skill intensity. The evidence also suggests positive spill-over effects in manufacturing sectors and sectors with a high routine task content and thus a high automation potential.

Suggested Citation

  • Natia Mosiashvili & Jon Pareliussen, 2020. "Digital technology adoption, productivity gains in adopting firms and sectoral spill-overs: Firm-level evidence from Estonia," OECD Economics Department Working Papers 1638, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1638-en
    DOI: 10.1787/ba9d00be-en
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    Cited by:

    1. Zhiying Ji & Tingyu Zhou & Qian Zhang, 2023. "The Impact of Digital Transformation on Corporate Sustainability: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 15(3), pages 1-19, January.

    More about this item

    Keywords

    Digitalisation; productivity; skills; training;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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