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Digital Technologies, Hiring, Training, and Firm Outcomes

Author

Listed:
  • Marydas, Sneha

    (RS: GSBE MGSoG, Maastricht Graduate School of Governance)

  • Mathew, Nanditha

    (Maastricht Graduate School of Governance, RS: GSBE MORSE, RS: GSBE MGSoG)

  • De Marzo, Giordano
  • Pietrobelli, Carlo

    (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn)

Abstract

In this study, using a novel dataset that matches firm-level data with online job vacancy data, we investigate the effects of firms’ digital technology adoption on future hiring and the dynamics of hiring and training, focusing on different types of technologies and categories of occupations. First, we examine the impact of adopting different types of digital technologies, namely AI, Advanced ICT, and Basic ICT, on future firm hiring. Our findings reveal that less advanced digital jobs (eg. Basic ICT, Advanced ICT) are substituted by more advanced digital jobs (eg. AI), while the advanced technology adoption by firms leads to increased overall hiring of non-digital roles. Second, we show that there is a positive relationship between training and new hiring only for one occupational category, namely, managers, with no significant relationship for other occupations. Third, we investigate the joint effect of training and technology adoption for firm performance. Our findings reveal that digital technology adoption enhances a firm’s financial performance only when combined with internal staff training. The sole exception is AI, which yields positive performance benefits even in the absence of training.

Suggested Citation

  • Marydas, Sneha & Mathew, Nanditha & De Marzo, Giordano & Pietrobelli, Carlo, 2025. "Digital Technologies, Hiring, Training, and Firm Outcomes," MERIT Working Papers 2025-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2025004
    DOI: 10.53330/ARHR3976
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    More about this item

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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