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Diffusion of information technology, internet use and the demand of heterogeneous labor

  • Falk, Martin

This paper analyzes the link between the diffusion of information- and communication technology (ICT) and both the skill structure and employment expectations of the different skill categories. The analysis is based on cross-sectional data for 4150 German firms conducted in mid-2000. The penetration of ICT is measured as the percentage of workers using a computer on the job for at least half of the working time, the number of computers per worker, percentage of workers with internet access, as well as the use of software applications such as ERP, CAD/CAE and database management systems. The empirical evidence indicates that firms with a higher diffusion of ICT employ a larger fraction of workers with a university degree as well as ICT specialists. Conversely, a greater ICT penetration is significantly negatively related to the share of both medium-skilled and unskilled workers. To account for censoring in the employment shares, the empirical analysis uses Powell?s (1984) Censored Least Absolute Deviations estimator (CLAD). Furthermore, results of ordered probit models show that employment expectations for workers with a university degree are positively related to the degree of ICT penetration.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 01-48.

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Date of creation: 2001
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Handle: RePEc:zbw:zewdip:5402
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  1. Falk, Martin & Seim, Katja, 1999. "The impact of information technology on high-skilled labour in services: evidence from firm level panel data," ZEW Discussion Papers 99-58, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," NBER Working Papers 5956, National Bureau of Economic Research, Inc.
  3. Lucy Chennells & John Van Reenen, 1999. "Has technology hurt less skilled workers? A survey of the micro-econometric evidence," IFS Working Papers W99/27, Institute for Fiscal Studies.
  4. McDonald, James B. & Xu, Yexiao J., 1996. "A comparison of semi-parametric and partially adaptive estimators of the censored regression model with possibly skewed and leptokurtic error distributions," Economics Letters, Elsevier, vol. 51(2), pages 153-159, May.
  5. Ulrich Kaiser, 2000. "New Technologies And The Demand For Heterogeneous Labor: Firm-Level Evidence For The German Business-Related Service Sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(5), pages 465-486.
  6. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  7. Dean Jolliffe & Bohdan Krushelnytskyy & Anastassia Semykina, 2001. "Censored least absolute deviations estimator: CLAD," Stata Technical Bulletin, StataCorp LP, vol. 10(58).
  8. Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages F390-415, June.
  9. Breslaw, Jon A. & McIntosh, James, 1998. "Simulated latent variable estimation of models with ordered categorical data," Journal of Econometrics, Elsevier, vol. 87(1), pages 25-47, August.
  10. Donald Siegel, 1998. "The Impact Of Technological Change On Employment: Evidence From A Firm-Level Survey Of Long Island Manufacturers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 227-246.
  11. Melenberg, B. & van Soest, A.H.O., 1991. "Parametric and semi-parametric modelling of vacation expenditures," Discussion Paper 1991-44, Tilburg University, Center for Economic Research.
  12. Jacobebbinghaus, Peter & Zwick, Thomas, 2001. "New technologies and the demand for medium qualified labour in Germany," ZEW Discussion Papers 01-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
  14. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
  15. Paarsch, Harry J., 1984. "A Monte Carlo comparison of estimators for censored regression models," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 197-213.
  16. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-60, November.
  17. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
  18. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
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