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Digitalization at work, Job Tasks and Wages: Cross-Country evidence from PIAAC1

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  • De La Rica, Sara
  • Gortazar, Lucas

Abstract

The aim of the paper is threefold. First, we compute differences on job tasks (Abstract, Routine and Manual) across a harmonized and hence comparable sample of Anglo-saxon, many European and even Asian advanced countries. We do so by using very precise information on job contents at the worker level, which allows for job task heterogeneity within occupations. Second we assess the extent to which computer adoption leads to the observed differences of job contents across countries. Third, we test the impact of tasks at work on average wages and wage inequality. Our results show remarkable differences in the degree of polarization of job contents across countries, being computer adoption at work a key significant driver of such differences. In particular, ICT use at work explains 10.0% (7.7%) of the cross-country conditional differences in Abstract (Routine) tasks at work. Finally, our results indicate that although differences in tasks explain an important and significant part of wage differentials (similar to what is found in Autor and Handel, 2013), we cannot find a clear pattern in the explanation of wage inequality gaps by looking at differences in task endowments and task returns.

Suggested Citation

  • De La Rica, Sara & Gortazar, Lucas, 2017. "Digitalization at work, Job Tasks and Wages: Cross-Country evidence from PIAAC1," GLO Discussion Paper Series 22, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:22
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    References listed on IDEAS

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    5. Falck, Oliver & Heimisch-Roecker, Alexandra & Wiederhold, Simon, 2021. "Returns to ICT skills," Research Policy, Elsevier, vol. 50(7).
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    1. Akgündüz, Yusuf Emre & Torun, Huzeyfe, 2020. "Two and a half million Syrian refugees, tasks and capital intensity," Journal of Development Economics, Elsevier, vol. 145(C).
    2. Fossen, Frank M. & Sorgner, Alina, 2019. "New Digital Technologies and Heterogeneous Employment and Wage Dynamics in the United States: Evidence from Individual-Level Data," IZA Discussion Papers 12242, Institute of Labor Economics (IZA).
    3. Ehlert, Martin, 2020. "No Future, No Training? Explaining Cross-national Variation in the Effect of Job Tasks On Training Participation [Keine Zukunft, keine Weiterbildung? Zur Erklärung von Länderunterschieden im Effekt," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 72(S1), pages 483-510.
    4. Akgündüz, Yusuf Emre & Torun, Huzeyfe, 2018. "Two and a half million Syrian refugees, skill mix and capital intensity," GLO Discussion Paper Series 186, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Digitalization; Job Tasks; RIF-Regressions; Wage Decomposition; PIACC;
    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
    • 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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