IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Labor Demand and Information Technologies: Evidence for Spain, 1980-2005

  • Manuel A. Hidalgo Pérez

    ()

    (Department of Economics, Universidad Pablo de Olavide)

  • Jesús Rodríguez López

    ()

    (Department of Economics, Universidad Pablo de Olavide)

  • José María O´Kean Alonso

    ()

    (Department of Economics, Universidad Pablo de Olavide)

Using the EU KLEMS dataset we test the capital-skill complementarity hypothesis in a cross-section of sectors in Spain between 1980 and 2005. We analyze three groups of workers, who are classed according to skill level: high, medium and low. Capital assets have been broken down into ICT (information and communication technologies) assets and non-ICT assets. Acquisition and usage costs of ICT assets declined throughout the period studied, both in absolute terms and relative to the other capital assets and workers. Our principal finding is that the substitutibility between workers and ICT assets falls as worker skill level rises. In fact, the ICT assets were strongly complement with highly skilled workers and were not substitutive with them. Throughout the period analyzed, the fraction of employed medium- and high-skill workers rose by 21% and 12%, respectively, to the disadvantage of low-skill workers. After decomposing these changes, we found that the latter were dominated by an ajustment within sectors more than by a composition effect or adjustment between sectors. These adjustments may be explained by reference to the estimated elasticities of substitution.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.upo.es/serv/bib/wps/econ0812.pdf
File Function: First version, 2008
Download Restriction: no

Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 08.12.

as
in new window

Length: 33 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:pab:wpaper:08.12
Contact details of provider: Postal: Carretera de Utrera km.1, 41013 Sevilla
Phone: + 34 954 34 8913
Fax: + 34 954 34 9339
Web page: http://www.upo.es/econ/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Jesús Rodríguez López & Diego Martínez López & José Luis Torres Chacón, 2007. "The Productivity Paradox and the New Economy: The Spanish Case," Working Papers 07.01, Universidad Pablo de Olavide, Department of Economics.
  2. Falk, Martin & Koebel, Bertrand M., 2004. "The impact of office machinery, and computer capital on the demand for heterogeneous labour," Labour Economics, Elsevier, vol. 11(1), pages 99-117, February.
  3. Michael R. Pakko, 2001. "What happens when the technology growth trend changes?: transition dynamics, capital growth and the "new economy"," Working Papers 2001-020, Federal Reserve Bank of St. Louis.
  4. Catherine Robinson & Mary O'Mahony & Michela Vecchi, 2004. "The Impact Of ICT On The Demand For Skilled Labour: A Cross-Country Comparison," Royal Economic Society Annual Conference 2004 91, Royal Economic Society.
  5. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Publishing.
  6. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
  7. Pakko Michael R., 2005. "Changing Technology Trends, Transition Dynamics, and Growth Accounting," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-42, December.
  8. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
  9. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, December.
  10. Linnea Polgreen & Pedro Silos, 2005. "Capital-skill complementarity and inequality: a sensitivity analysis," Working Paper 2005-20, Federal Reserve Bank of Atlanta.
  11. Per Krusell & Lee E. Ohanian & Jose-Victor Rios-Rull & Giovanni L. Violante, 1997. "Capital-skill complementarity and inequality: a macroeconomic analysis," Staff Report 239, Federal Reserve Bank of Minneapolis.
  12. Greenwood, J. & Hercowitz, Z. & Krusell, P., 1995. "Long-Run Implications of Investment-Specific Technological Change," UWO Department of Economics Working Papers 9510, University of Western Ontario, Department of Economics.
  13. Quesada Ibáñez Javier & Mas Ivars Matilde, 2006. "The Role of ICT in the Spanish Productivity Slowdown," Working Papers 201035, Fundacion BBVA / BBVA Foundation.
  14. Marcel P. Timmer & Mary O’Mahony & Bart van Ark, 2007. "EU KLEMS Growth and Productivity Accounts: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 71-85, Spring.
  15. Stephen Machin & John Van Reenen, 1998. "Technology And Changes In Skill Structure: Evidence From Seven Oecd Countries," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1215-1244, November.
  16. John Duffy & Chris Papageorgiou & Fidel Perez-Sebastian, 2004. "Capital-Skill Complementarity? Evidence from a Panel of Countries," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 327-344, February.
  17. Chris Papageorgiou & Viera Chmelarova, 2005. "Nonlinearities in Capital–Skill Complementarity," Journal of Economic Growth, Springer, vol. 10(1), pages 55-86, 01.
  18. Mas Ivars Matilde & Uriel Jiménez Ezequiel & Pérez García Francisco, 2005. "El stock y los servicios del capital en España (1964-2002). Nueva metodología," Books, Fundacion BBVA / BBVA Foundation, edition 0, number 201147.
  19. Christopher Gust & Jaime Marquez, 2002. "International comparisons of productivity growth: the role of information technology and regulatory practices," International Finance Discussion Papers 727, Board of Governors of the Federal Reserve System (U.S.).
  20. Andreas Hornstein & Per Krusell, 1996. "Can Technology Improvements Cause Productivity Slowdowns?," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 209-276 National Bureau of Economic Research, Inc.
  21. Timmer, Marcel P. & Ypma, Gerard & Ark, Bart van der, 2003. "IT in the European Union: driving productivity divergence?," GGDC Research Memorandum 200363, Groningen Growth and Development Centre, University of Groningen.
  22. Daron Acemoglu, 2003. "Cross-Country Inequality Trends," Economic Journal, Royal Economic Society, vol. 113(485), pages F121-F149, February.
  23. Samaniego, Roberto M., 2006. "Organizational capital, technology adoption and the productivity slowdown," Journal of Monetary Economics, Elsevier, vol. 53(7), pages 1555-1569, October.
  24. Kevin J. Stiroh, 2001. "Information technology and the U.S. productivity revival: what do the industry data say?," Staff Reports 115, Federal Reserve Bank of New York.
  25. Manuel A. Hidalgo, 2008. "A Demand-Supply Analysis of the Spanish Education Wage Premium in the 1980s and 1990s," Working Papers 08.01, Universidad Pablo de Olavide, Department of Economics.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pab:wpaper:08.12. 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: (Publicación Digital - UPO)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.