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Does ICT Usage Erode Routine Occupations at the Firm Level?

Author

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  • Petri Böckerman
  • Seppo Laaksonen
  • Jari Vainiomäki

Abstract

We show that disappearing routine work can be linked to firm‐level ICT usage. Our results for the increasing abstract and declining routine occupation shares of total wage bill are consistent with job polarization at the firm level. The observed changes coincide with the usage of ICT in firms. These results are based on decompositions and regression analyses that evaluate the hollowing‐out of routine occupations and job polarization at the firm level.

Suggested Citation

  • Petri Böckerman & Seppo Laaksonen & Jari Vainiomäki, 2019. "Does ICT Usage Erode Routine Occupations at the Firm Level?," LABOUR, CEIS, vol. 33(1), pages 26-47, March.
    • Handle: RePEc:bla:labour:v:33:y:2019:i:1:p:26-47
    DOI: 10.1111/labr.12137
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    Citations

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    Cited by:

    1. Terhi Maczulskij, 2024. "Occupational Mobility of Routine Workers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(5), pages 1198-1229, October.
    2. Tuomo Alasoini & Seppo Tuomivaara, 2023. "Occupational change, computer use and the complementarity effect in the digital age: Evidence from Finland," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 755-772, August.
    3. 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.
    4. Genz, Sabrina & Schnabel, Claus, 2021. "Digging into the Digital Divide: Workers' Exposure to Digitalization and Its Consequences for Individual Employment," IZA Discussion Papers 14649, Institute of Labor Economics (IZA).
    5. Arntz, Melanie & Genz, Sabrina & Gregory, Terry & Lehmer, Florian & Zierahn-Weilage, Ulrich, 2024. "De-routinization in the fourth industrial revolution: Firm-level evidence," ZEW Discussion Papers 24-005, ZEW - Leibniz Centre for European Economic Research.
    6. Didier, Nicolas, 2024. "Turning fragments into a lens: Technological change, industrial revolutions, and labor," Technology in Society, Elsevier, vol. 77(C).
    7. Jaimovich, Nir & Zhang, Miao Ben & Vincent, Nicolas, 2024. "Under the hood of the routine share decline," Economics Letters, Elsevier, vol. 234(C).
    8. 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).
    9. Harrigan, James & Reshef, Ariell & Toubal, Farid, 2021. "The March of the Techies: Job Polarization Within and Between Firms," Research Policy, Elsevier, vol. 50(7).
    10. Henrik Schwabe & Fulvio Castellacci, 2020. "Automation, workers’ skills and job satisfaction," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-26, November.
    11. Kauhanen, Antti & Maczulskij, Terhi & Riukula, Krista, 2020. "Heterogeneous Impacts of the Decentralization of Collective Bargaining," IZA Discussion Papers 13867, Institute of Labor Economics (IZA).
    12. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
    13. Rafael Novella & David Rosas-Shady & Alfredo Alvarado, 2023. "Are we nearly there yet? New technology adoption and labor demand in Peru," Science and Public Policy, Oxford University Press, vol. 50(4), pages 565-578.
    14. Jelena Reljic & Rinaldo Evangelista & Mario Pianta, 2019. "Digital technologies, employment and skills," LEM Papers Series 2019/36, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    15. 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).
    16. NÁPLAVA, Radek & MÁDR, Michal, 2024. "Job Polarization between Firms in European Sectors," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 65(2), pages 154-176, December.
    17. Bustos, Emil, 2023. "The Effect of Centrally Bargained Wages on Firm Growth," Working Paper Series 1456, Research Institute of Industrial Economics.
    18. Storm, Eduard, 2021. "Task specialization and the native-foreign wage gap: Evidence from worker-level data," Ruhr Economic Papers 928, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    19. Eduard Storm, 2022. "Task specialization and the Native‐Foreign Wage Gap," LABOUR, CEIS, vol. 36(2), pages 167-195, June.

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