IDEAS home Printed from https://ideas.repec.org/p/wii/wpaper/207.html

Is ICT Still Polarising Labour Demand after the Crisis?

Author

Listed:
  • David Pichler
  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

The impact of ICT capital accumulation and digitisation on labour demand and wage structures has changed in recent years, according to some of the literature on the subject. We analyse the impact of ICT capital accumulation based on recent data differentiating between the period before and after the global financial crisis. Methodologically, we draw on Michaels, Natraj and van Reenen (2014) and are able to corroborate their findings for the period 1980-2004, whereas we find distinctly different patterns since 2011. Results suggest a negative relationship between changes in ICT intensity and the wage share for high-skilled workers, whereas medium-skilled workers were the main beneficiaries in sectors that experienced a more intensive digitisation process. These results are chiefly driven by the dynamics in the Central and Eastern European economies and the service industries. The effect of digitisation on low-skilled workers does not reveal any robust significant impact.

Suggested Citation

  • David Pichler & Robert Stehrer, 2021. "Is ICT Still Polarising Labour Demand after the Crisis?," wiiw Working Papers 207, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:207
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/is-ict-still-polarising-labour-demand-after-the-crisis-dlp-5886.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hulten, Charles R. & Ramey, Valerie A. (ed.), 2018. "Education, Skills, and Technical Change," National Bureau of Economic Research Books, University of Chicago Press, number 9780226567808, October.
    2. Robert G. Valletta, 2018. "Recent Flattening in the Higher Education Wage Premium: Polarization, Skill Downgrading, or Both?," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 313-342, National Bureau of Economic Research, Inc.
    3. Charles R. Hulten & Valerie A. Ramey, 2018. "Education, Skills, and Technical Change: Implications for Future US GDP Growth," NBER Books, National Bureau of Economic Research, Inc, number hult-12, October.
    4. Timmer,Marcel P. & Inklaar,Robert & O'Mahony,Mary & Ark,Bart van, 2013. "Economic Growth in Europe," Cambridge Books, Cambridge University Press, number 9781107412446.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stehrer, Robert, 2024. "The impact of ICT and intangible capital accumulation on employment growth and labour income shares," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 211-220.
    2. Robert Stehrer, 2024. "Neue Technologien, Firmenperformance und Beschäftigung: Erste Analysen basierend auf österreichischen Firmendaten," wiiw Research Reports in German language 26, The Vienna Institute for International Economic Studies, wiiw.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Q. Blair & David J. Deming, 2020. "Structural Increases in Skill Demand after the Great Recession," NBER Working Papers 26680, National Bureau of Economic Research, Inc.
    2. Shelly Lundberg, 2020. "Educational gender gaps," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 416-439, October.
    3. Gensowski, Miriam & Gørtz, Mette & Schurer, Stefanie, 2021. "Inequality in personality over the life cycle," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 46-77.
    4. Godfrey Madigu & Luis A. Gil‐Alana, 2021. "What do productivity indices tell us? A case study of U.S. industries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 4946-4978, October.
    5. Tsakanikas, Aggelos & Roth, Felix & Caliò, Simone & Caloghirou, Yannis & Dimas, Petros, 2020. "The contribution of intangible inputs and participation in global value chains to productivity performance – Evidence from the EU-28, 2000-2014," Hamburg Discussion Papers in International Economics 5, University of Hamburg, Department of Economics.
    6. Leona Maruyama, 2023. "Identifying Socioeconomic Determinants of Child Maltreatment in the United States," Keio-IES Discussion Paper Series 2023-003, Institute for Economics Studies, Keio University.
    7. de New, Sonja C. & Schurer, Stefanie & Sulzmaier, Dominique, 2021. "Gender differences in the lifecycle benefits of compulsory schooling policies," European Economic Review, Elsevier, vol. 140(C).
    8. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    9. DUERNECKER Georg & SANCHEZ MARTINEZ Miguel, 2021. "Structural change and productivity growth in the European Union: Past, present and future," JRC Working Papers on Territorial Modelling and Analysis 2021-09, Joint Research Centre.
    10. Jeffrey T. Denning & Eric R. Eide & Kevin J. Mumford & Richard W. Patterson & Merrill Warnick, 2022. "Why Have College Completion Rates Increased?," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 1-29, July.
    11. Wulong Gu, 2018. "Accounting for Slower Productivity Growth in the Canadian Business Sector after 2000: The Role of Capital Measurement Issues," International Productivity Monitor, Centre for the Study of Living Standards, vol. 34, pages 21-39, Spring.
    12. Ortega-Argilés, Raquel & Piva, Mariacristina & Vivarelli, Marco, 2011. "Productivity Gains from R&D Investment: Are High-Tech Sectors Still Ahead?," IZA Discussion Papers 5975, IZA Network @ LISER.
    13. Alexander Salmen, 2021. "New Product Launch Success: A Literature Review," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 69(1), pages 151-176.
    14. Robert Stehrer, 2012. "Trade in Value Added and the Valued Added in Trade," wiiw Working Papers 81, The Vienna Institute for International Economic Studies, wiiw.
    15. Lajos Baráth & Imre Fertő, 2017. "Productivity and Convergence in European Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 228-248, February.
    16. Ilya B. Voskoboynikov, 2023. "Sources of productivity growth in Eastern Europe and Russia before the global financial crisis," Journal of Productivity Analysis, Springer, vol. 59(3), pages 225-241, June.
    17. Christian Belzil & Jörgen Hansen, 2020. "Reconciling Changes in Wage Inequality With Changes in College Selectivity Using a Behavioral Model," CIRANO Working Papers 2020s-36, CIRANO.
    18. Wang, Sun Ling & Hoppe, Robert A. & Hertz, Thomas & Xu, Shicong, "undated". "Farm Labor, Human Capital, and Agricultural Productivity in the United States," USDA Miscellaneous 323858, United States Department of Agriculture.
    19. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio, 2017. "Knowledge Spillovers, ICT and Productivity Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(4), pages 592-618, August.
    20. Ilya B. Voskoboynikov, 2020. "Structural Change, Expanding Informality and Labor Productivity Growth in Russia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 394-417, June.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:wpaper:207. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/wiiwwat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.