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ICT and occupation-based measures of organisational change: Firm and employee outcomes

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  • Böckerman, Petri
  • Kauhanen, Antti
  • Maliranta, Mika

Abstract

To examine the productivity, employment and wage effects of ICT, we apply novel occupation based measures of organisational change within firms. With these measures, we directly address the complementarities between ICT and organisational changes. Our results support the view that organisational change complements ICT investments in a productivity-enhancing manner. In particular, the ICT-driven productivity gains are associated with the destruction of routine and non-interactive tasks in an organisation. Furthermore, using longitudinal aspects of our linked employer-employee data, we find that whereas ICT does not affect the probability of an employee becoming unemployed, it has a positive impact on the wage growth of retained employees.

Suggested Citation

  • Böckerman, Petri & Kauhanen, Antti & Maliranta, Mika, 2012. "ICT and occupation-based measures of organisational change: Firm and employee outcomes," ETLA Working Papers 2, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:wpaper:2
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    Cited by:

    1. Terhi Maczulskij & Mika Maliranta & Sari Pekkala Kerr, 2016. "Within and Between Firm Trends in Job Polarization: Role of Globalization and Technology," Working Papers 308, Palkansaajien tutkimuslaitos, Labour Institute for Economic Research.

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    More about this item

    Keywords

    ICT; innovation; organisational change; restructuring; productivity; performance; wages;
    All these keywords.

    JEL classification:

    • 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
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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