Biagi F., Pantea S., Sabadash A. (2014)

“Are ICT Displacing Workers? Evidence from Seven European Countries” (July 1). Available at SSRN

Abstract:

This paper examines whether ICT substitute labour and reduce the demand for labour. We used firm-level comparable data separately for firms in manufacturing, services and ICT-producing sectors from seven European countries. We adopted a common methodology and applied it to a unique dataset provided by the ESSLait Project on Linking Microdata. We controlled for unobservable time-invariant firm-specific effects and we found no evidence of a negative relationship between intensity of ICT use and employment growth. We read this as an indication that ICT use is not reducing employment among ICT using firms.

Keywords: Labour Demand, Technology Change, ICT

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