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IT Capital, Job Content and Educational Attainment

  • Spitz, Alexandra
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    Based on a large data set containing information on occupations between 1979 and 1999, this study explores the ?black box? surrounding the skill?biased technological change hypothesis by analyzing the mechanisms that induce information technologies to be complementary to employees with higher skill levels. Using direct, multidimensional measures of occupational skill requirements, the analysis shows that IT capital substitutes repetitive manual and repetitive cognitive skills, whereas it complements analytical and interactive skills. These changes in the within occupational task mix result in an increased deployment of employees with high levels of education who have comparative advantages in performing non?repetitive cognitive tasks.

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    File URL: http://econstor.eu/bitstream/10419/24808/1/dp0304.pdf
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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 03-04.

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    Date of creation: 2003
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    Handle: RePEc:zbw:zewdip:900
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    1. Paul Osterman, 2000. "Work reorganization in an era of restructuring: Trends in diffusion and effects on employee welfare," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 179-196, January.
    2. Timothy F. Bresnahan, 1997. "Computerization and Wage Dispersion: An Analytical Reinterpretation," Working Papers 97031, Stanford University, Department of Economics.
    3. Berndt, Ernst R. & Morrison, Catherine J. & Rosenblum, Larry S., 1992. "High-tech capital formation and labor composition in U.S. manufacturing industries : an exploratory analysis," Working papers 3414-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    4. Edward N. Wolff, 1995. "Technology and the Demand for Skills," Economics Working Paper Archive wp_153, Levy Economics Institute.
    5. 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.
    6. Falk, Martin, 2001. "Diffusion of information technology, internet use and the demand of heterogeneous labor," ZEW Discussion Papers 01-48, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Stasz, Cathleen, 2001. "Assessing Skills for Work: Two Perspectives," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 385-405, July.
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