IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v198y2024ics0040162523006832.html
   My bibliography  Save this article

How digital technology affects working conditions in globally fragmented production chains: Evidence from Europe

Author

Listed:
  • Parteka, Aleksandra
  • Wolszczak-Derlacz, Joanna
  • Nikulin, Dagmara

Abstract

This paper uses a sample of over 9 million workers from 22 European countries to study the intertwined relationship between digital technology, cross-border production links and working conditions. We compare the social consequences of technological change exhibited by three types of innovation: computerisation (software), automation (robots) and artificial intelligence (AI). To fully quantify work-related wellbeing, we propose a new methodology that amends the information on remuneration by reference to such non-monetary factors as the work environment (physical and social), career development prospects, or work intensity. First, we show that employee wellbeing is related to the type of technological exposure. Employees in occupations with a high degree of software or robot exposure face worse working conditions – contrary to highly AI exposed occupations. Thus, we find that AI technologies differ from previous waves of technological progress - also in relation to workers' wellbeing. Additionally, we show that the relationship between digital technology and working conditions weakly depends on participation in global production chains.

Suggested Citation

  • Parteka, Aleksandra & Wolszczak-Derlacz, Joanna & Nikulin, Dagmara, 2024. "How digital technology affects working conditions in globally fragmented production chains: Evidence from Europe," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    • Handle: RePEc:eee:tefoso:v:198:y:2024:i:c:s0040162523006832
    DOI: 10.1016/j.techfore.2023.122998
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162523006832
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2023.122998?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    2. Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2013. "Offshoring, tasks, and the skill-wage pattern," European Economic Review, Elsevier, vol. 61(C), pages 132-152.
    3. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    4. Baldwin, Richard & Venables, Anthony J., 2013. "Spiders and snakes: Offshoring and agglomeration in the global economy," Journal of International Economics, Elsevier, vol. 90(2), pages 245-254.
    5. David Hummels & Jakob R. Munch & Chong Xiang, 2018. "Offshoring and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 981-1028, September.
    6. Hartmut Egger & Udo Kreickemeier & Jens Wrona, 2017. "Offshoring Domestic Jobs," World Scientific Book Chapters, in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 2, pages 27-70, World Scientific Publishing Co. Pte. Ltd..
    7. Matilde Cardoso & Pedro Cunha Neves & Oscar Afonso & Elena Sochirca, 2021. "The effects of offshoring on wages: a meta-analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 149-179, February.
    8. Marko Ledić & Ivica Rubil, 2021. "Beyond Wage Gap, Towards Job Quality Gap: The Role of Inter-Group Differences in Wages, Non-Wage Job Dimensions, and Preferences," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 523-561, June.
    9. Sabina Szymczak & Joanna Wolszczak-Derlacz, 2022. "Global value chains and labour markets – simultaneous analysis of wages and employment," Economic Systems Research, Taylor & Francis Journals, vol. 34(1), pages 69-96, January.
    10. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 907-940.
    11. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    12. William MILBERG & Deborah WINKLER, 2011. "Economic and social upgrading in global production networks: Problems of theory and measurement," International Labour Review, International Labour Organization, vol. 150(3-4), pages 341-365, December.
    13. David H. Autor & David Dorn & Gordon H. Hanson & Jae Song, 2014. "Trade Adjustment: Worker-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1799-1860.
    14. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    15. Daron Acemoglu & Pascual Restrepo, 2019. "Automation and New Tasks: How Technology Displaces and Reinstates Labor," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 3-30, Spring.
    16. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    17. Sergi Basco & Martí Mestieri, 2018. "Mergers Along the Global Supply Chain: Information Technologies and Routine Tasks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(2), pages 406-433, April.
    18. Avraham Ebenstein & Ann Harrison & Margaret McMillan & Shannon Phillips, 2022. "Estimating The Impact Of Trade And Offshoring On American Workers Using The Current Population Surveys," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 12, pages 275-289, World Scientific Publishing Co. Pte. Ltd..
    19. Ingo Geishecker & Holger Görg, 2013. "Services offshoring and wages: evidence from micro data," Oxford Economic Papers, Oxford University Press, vol. 65(1), pages 124-146, January.
    20. Baldwin, Richard, 2012. "Global supply chains: Why they emerged, why they matter, and where they are going," CEPR Discussion Papers 9103, C.E.P.R. Discussion Papers.
    21. Piotr Lewandowski & Albert Park & Wojciech Hardy & Yang Du & Saier Wu, 2022. "Erratum to: Technology, Skills, and Globalization: Explaining International Differences in Routine and Nonroutine Work Using Survey Data," The World Bank Economic Review, World Bank, vol. 36(3), pages 801-801.
    22. David H. Autor & Michael J. Handel, 2013. "Putting Tasks to the Test: Human Capital, Job Tasks, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 59-96.
    23. Khalid Nadvi & John T. Thoburn & Bui Tat Thang & Nguyen Thi Thanh Ha & Nguyen Thi Hoa & Dao Hong Le & Enrique Blanco De Armas, 2004. "Vietnam in the global garment and textile value chain: impacts on firms and workers," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 111-123.
    24. Gruetzemacher, Ross & Dorner, Florian E. & Bernaola-Alvarez, Niko & Giattino, Charlie & Manheim, David, 2021. "Forecasting AI progress: A research agenda," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    25. Erik Brynjolfsson & Tom Mitchell & Daniel Rock, 2018. "What Can Machines Learn, and What Does It Mean for Occupations and the Economy?," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 43-47, May.
    26. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2006. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 7, pages 307-458, Elsevier.
    27. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    28. Duncan Gallie & Alan Felstead & Francis Green, 2012. "Job preferences and the intrinsic quality of work: the changing attitudes of British employees 1992–2006," Work, Employment & Society, British Sociological Association, vol. 26(5), pages 806-821, October.
    29. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2020. "Wage response to global production links: evidence for workers from 28 European countries (2005–2014)," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 769-801, November.
    30. Andrew E. Clark, 2015. "What makes a good job? Job quality and job satisfaction," IZA World of Labor, Institute of Labor Economics (IZA), pages 215-215, December.
    31. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data," Open Economies Review, Springer, vol. 30(3), pages 505-539, July.
    32. María Cascales Mira, 2021. "New Model for Measuring Job Quality: Developing an European Intrinsic Job Quality Index (EIJQI)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 625-645, June.
    33. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    34. Piotr Lewandowski & Albert Park & Wojciech Hardy & Yang Du & Saier Wu, 2022. "Technology, Skills, and Globalization: Explaining International Differences in Routine and Nonroutine Work Using Survey Data," The World Bank Economic Review, World Bank, vol. 36(3), pages 687-708.
    35. Alan S. Blinder, 2009. "How Many US Jobs Might be Offshorable?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 10(2), pages 41-78, April.
    36. Marguerita Lane & Anne Saint-Martin, 2021. "The impact of Artificial Intelligence on the labour market: What do we know so far?," OECD Social, Employment and Migration Working Papers 256, OECD Publishing.
    37. Loe Franssen, 2019. "Global Value Chains And Relative Labour Demand: A Geometric Synthesis Of Neoclassical Trade Models," Journal of Economic Surveys, Wiley Blackwell, vol. 33(4), pages 1232-1256, September.
    38. David H. Autor & David Dorn & Gordon H. Hanson, 2015. "Untangling Trade and Technology: Evidence from Local Labour Markets," Economic Journal, Royal Economic Society, vol. 0(584), pages 621-646, May.
    39. Stefano Baruffaldi & Brigitte van Beuzekom & Hélène Dernis & Dietmar Harhoff & Nandan Rao & David Rosenfeld & Mariagrazia Squicciarini, 2020. "Identifying and measuring developments in artificial intelligence: Making the impossible possible," OECD Science, Technology and Industry Working Papers 2020/05, OECD Publishing.
    40. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    41. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    42. Alan S. Blinder & Alan B. Krueger, 2013. "Alternative Measures of Offshorability: A Survey Approach," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 97-128.
    43. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    44. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    45. Marc Fleurbaey, 2015. "Beyond Income and Wealth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 199-219, June.
    46. Budría, Santiago & Milgram Baleix, Juliette, 2020. "Offshoring, job satisfaction and job insecurity," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-32.
    47. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
    48. Nikulin, Dagmara & Wolszczak-Derlacz, Joanna, 2022. "GVC involvement and the gender wage gap: Micro-evidence on European countries," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 268-282.
    49. Céline GIMET & Bernard GUILHON & Nathalie ROUX, 2015. "Social upgrading in globalized production: The case of the textile and clothing industry," International Labour Review, International Labour Organization, vol. 154(3), pages 303-327, September.
    50. Zhi Wang & Shang-Jin Wei & Kunfu Zhu, 2013. "Quantifying International Production Sharing at the Bilateral and Sector Levels," NBER Working Papers 19677, National Bureau of Economic Research, Inc.
    51. Shen, Leilei & Silva, Peri, 2018. "Value-added exports and U.S. local labor markets: Does China really matter?," European Economic Review, Elsevier, vol. 101(C), pages 479-504.
    52. Martina Bisello & Marta Fana & Enrique Fernández-Macías & Sergio Torrejón Pérez, 2021. "A comprehensive European database of tasks indices for socio-economic research," JRC Working Papers on Labour, Education and Technology 2021-04, Joint Research Centre.
    53. Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen J., 2016. "An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release," GGDC Research Memorandum GD-162, Groningen Growth and Development Centre, University of Groningen.
    54. Maarten Goos, 2018. "The impact of technological progress on labour markets: policy challenges," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 34(3), pages 362-375.
    55. Rossi, Arianna, 2013. "Does Economic Upgrading Lead to Social Upgrading in Global Production Networks? Evidence from Morocco," World Development, Elsevier, vol. 46(C), pages 223-233.
    56. Damiani, Mirella & Pompei, Fabrizio & Kleinknecht, Alfred, 2020. "When robots do (not) enhance job quality: The role of innovation regimes," MPRA Paper 103059, University Library of Munich, Germany.
    57. Flavio Calvino & Chiara Criscuolo & Luca Marcolin & Mariagrazia Squicciarini, 2018. "A taxonomy of digital intensive sectors," OECD Science, Technology and Industry Working Papers 2018/14, OECD Publishing.
    58. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2022. "Position in global value chains and wages in Central and Eastern European countries," European Journal of Industrial Relations, , vol. 28(2), pages 211-230, June.
    Full references (including those not matched with items on IDEAS)

    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. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2020. "Wage response to global production links: evidence for workers from 28 European countries (2005–2014)," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 769-801, November.
    2. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data," Open Economies Review, Springer, vol. 30(3), pages 505-539, July.
    3. Baumgarten, Daniel & Irlacher, Michael & Koch, Michael, 2020. "Offshoring and non-monotonic employment effects across industries in general equilibrium," European Economic Review, Elsevier, vol. 130(C).
    4. Nikulin, Dagmara & Wolszczak-Derlacz, Joanna, 2022. "GVC involvement and the gender wage gap: Micro-evidence on European countries," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 268-282.
    5. Konstantin Koerner, 2023. "The wage effects of offshoring to the East and West: evidence from the German labor market," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 399-435, May.
    6. Akay, Alpaslan & Savsin, Selen, 2022. "Offshoring and well-being of workers," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 388-407.
    7. David Hummels & Jakob R. Munch & Chong Xiang, 2018. "Offshoring and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 981-1028, September.
    8. Guido Matias Cortes & Diego M. Morris, 2019. "Are Routine Jobs Moving South? Evidence from Changes in the Occupational Structure of Employment in the U.S. and Mexico," Working Paper series 19-15, Rimini Centre for Economic Analysis.
    9. Reijnders, Laurie S.M. & de Vries, Gaaitzen J., 2018. "Technology, offshoring and the rise of non-routine jobs," Journal of Development Economics, Elsevier, vol. 135(C), pages 412-432.
    10. Genz, Sabrina & Schnabel, Claus, 2021. "Digging into the digital divide: Workers' exposure to digitalization and its consequences for individual employment," Discussion Papers 118, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    11. Cirillo, Valeria & Evangelista, Rinaldo & Guarascio, Dario & Sostero, Matteo, 2021. "Digitalization, routineness and employment: An exploration on Italian task-based data," Research Policy, Elsevier, vol. 50(7).
    12. Jean-Philippe Deranty & Thomas Corbin, 2022. "Artificial Intelligence and work: a critical review of recent research from the social sciences," Papers 2204.00419, arXiv.org.
    13. Joanna Wolszczak-Derlacz & Aleksandra Parteka, 2018. "The effects of offshoring to low-wage countries on domestic wages: a worldwide industrial analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(1), pages 129-163, February.
    14. Guido Matias Cortes1 & Diego M. Morris, 2020. "Are routine jobs moving south? Evidence from changes in the occupational structure of employment in the USA and Mexico," WIDER Working Paper Series wp2020-11, World Institute for Development Economic Research (UNU-WIDER).
    15. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Position In Global Value Chains: The Impact On Wages In Central And Eastern European Countries," GUT FME Working Paper Series A 53, Faculty of Management and Economics, Gdansk University of Technology, revised Jan 2022.
    16. Nicola Gagliardi & Benoît Mahy & François Rycx, 2020. "Trade, GVCs, and wage inequality: Theoretical and empirical insights," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 115-134.
    17. Keller, Wolfgang & Utar, Hale, 2023. "International trade and job polarization: Evidence at the worker level," Journal of International Economics, Elsevier, vol. 145(C).
    18. Nikolaos Terzidis & Raquel Ortega‐Argilés, 2021. "Employment polarization in regional labor markets: Evidence from the Netherlands," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 971-1001, November.
    19. Gregory, Terry & Salomons, Anna & Zierahn, Ulrich, 2016. "Racing With or Against the Machine? Evidence from Europe," VfS Annual Conference 2016 (Augsburg): Demographic Change 145843, Verein für Socialpolitik / German Economic Association.
    20. Vallizadeh, Ehsan & Muysken, Joan & Ziesemer, Thomas, 2016. "Offshoring medium-skill tasks, low-skill unemployment and the skill-wage structure," MERIT Working Papers 2016-070, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Digital technology; Working conditions; GVC; Global value chains; artificial intelligence; AI;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F6 - International Economics - - Economic Impacts of Globalization
    • J8 - Labor and Demographic Economics - - Labor Standards
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    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:eee:tefoso:v:198:y:2024:i:c:s0040162523006832. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.