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The impact of ICT and intangible capital accumulation on employment growth and labour income shares

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  • Stehrer, Robert

Abstract

This paper investigates the impact of the accumulation of tangible capital, ICT and intangible capital assets like software and databases or R&D on employment growth and the changes in labour income shares at the country-industry level. The econometric analysis is derived from a Cobb–Douglas production function taking into account the stylised fact that the capital–output ratios are rather constant or increasing over time with the latter being the case particularly for ICT and intangible assets. The accumulation of tangible assets like machinery and transport equipment then has a relatively strong positive relation to employment growth. Further in line with the theoretical outline, the accumulation of ICT assets or intangible assets are less strongly related to employment growth. Both these conjectures are confirmed econometrically. The impact on labour income shares is mixed, but generally small.

Suggested Citation

  • Stehrer, Robert, 2024. "The impact of ICT and intangible capital accumulation on employment growth and labour income shares," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 211-220.
    • Handle: RePEc:eee:streco:v:70:y:2024:i:c:p:211-220
    DOI: 10.1016/j.strueco.2024.02.003
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    Cited by:

    1. Robert Stehrer & Stella Zilian, 2025. "Beschäftigungswirkungen der österreichischen Exportwirtschaft und demografische Szenarien," FIW Research Reports series RR-01-25-, FIW.
    2. Robert Stehrer & Stella Sophie Zilian, 2025. "Beschäftigungswirkungen der österreichischen Exportwirtschaft und demografische Szenarien," wiiw Research Reports in German language 30, The Vienna Institute for International Economic Studies, wiiw.
    3. Robert Stehrer, 2024. "Neue Technologien, Firmenperformance und Beschäftigung: Erste Analysen basierend auf österreichischen Firmendaten," wiiw Research Reports in German language 26, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    Capital accumulation; ICT capital; Intangibles; Labour demand; Income distribution;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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