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Labor Demand and ICT Adoption in Spain

Author

Listed:
  • Manuel Hidalgo-Pérez

    (Universidad Pablo de Olavide)

  • Jesús Rodríguez López

    (U. Pablo de Olavide)

  • José M. Okean

    (U. Pablo de Olavide)

Abstract

Spain is delayed in adopting information and communication technologies (ICT) and its productivity per hour worked presents a downward trend since the mid 90s. In this paper we argue that these two facts are related. Using the EU KLEMS dataset we test the capital-skill complementarity hypothesis in a cross-section of sectors in Spain. We find that the substitutability between workers and ICT assets falls as worker skill level rises, and that this feature holds across all sectors. Further- more, the ICT assets are complementary with skilled workers. The fraction of workers employed with medium and high skills across sectors rose by 21% and 12%, respectively, to the disadvantage of low skilled workers, due to an adjustment within sectors more than to a composition effect between sectors. Finally, using a regression analysis, we conclude that some labor market institutions are likely behind the evolution of sectorial productivity and ICT investment in Spain.

Suggested Citation

  • Manuel Hidalgo-Pérez & Jesús Rodríguez López & José M. Okean, 2015. "Labor Demand and ICT Adoption in Spain," Working Papers 15.10, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:15.10
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    Cited by:

    1. Daire McCoy & Sean Lyons & Edgar Morgenroth & Donal Palcic & Leonie Allen, 2018. "The impact of broadband and other infrastructure on the location of new business establishments," Journal of Regional Science, Wiley Blackwell, vol. 58(3), pages 509-534, June.

    More about this item

    Keywords

    Productivity; TFP; ICT; education;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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