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Assessing the Impact of New Technologies on Wages and Labour Income Shares

Author

Listed:
  • Antea Barišić
  • Mahdi Ghodsi

    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This paper advances the literature on the impacts of new technologies on labour markets, focusing on wage and labour income shares. Using a dataset from 32 countries and 38 industries, we analyse the effects of new technologies – proxied by patents, information and communication technology (ICT) capital usage, and robot intensity – on average wages and labour income shares over time. Our results indicate a positive correlation between patents and wage levels along with a minor negative impact on labour income shares, suggesting that technology rents are not fully passed on to labour. Robot intensity is positively associated with labour income shares, while ICT capital has an insignificant effect. These effects persist over time and are reinforced by global value chain (GVC) linkages. Our conclusions align with recent research indicating that new technologies have a generally limited impact on wages and labour income shares.

Suggested Citation

  • Antea Barišić & Mahdi Ghodsi & Robert Stehrer, 2024. "Assessing the Impact of New Technologies on Wages and Labour Income Shares," wiiw Working Papers 240, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:240
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    References listed on IDEAS

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    Cited by:

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    2. Hossain, Mokter & Ahmad, Farhan & Aleem, Majid & Bask, Anu & Rajahonka, Mervi, 2025. "Emerging technologies in sharing economy: a review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 218(C).
    3. Robert Stehrer, 2024. "Neue Technologien und Löhne: Erste Analysen basierend auf österreichischen Mikrodaten," wiiw Research Reports in German language 27, The Vienna Institute for International Economic Studies, wiiw.

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    Keywords

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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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