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The Effect of information and Communication Technologies on Unemployment: the Case of Selected OECD Countries

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  • Ahmet Unlu

    (Aydin Adnan Menderes University, Isabeyli Kampus, Nazilli-Aydin, Türkiye)

  • Seckin Kabak

    (Suleyman Demirel University, Isparta, Türkiye)

Abstract

With the acceleration of technological advances since the 1970s, Information and Communication Technologies (ICT) have begun to play an active and significant role in the global economy. Today, it is widely accepted that ICT directly or indirectly affects economic structures as well as social life. It is seen that ICT, together with globalization, has important consequences on macroeconomic indicators such as growth, development and unemployment. The effects of ICT, countries and specific economic variables are progressing with various academic studies. In this study, it was aimed to question the causality relationship between two variables in a sample of countries selected from the OECD with similar ICT and unemployment rates in order to reduce the overall variance in the model. This is seen in the most similar countries with Türkiye, the rate of internet access and rate ratio representing ICT development, the bootstrap panel causality analysis presented by Emirmahmutoðlu & Kose (2011) was completed for the period covering the years 2005-2021. As a result, although the countries show similar characteristics in the selection criterion rates, it is understood that there are differences between the unemployment rate and the rate of internet access representing ICT according to the shape of the causality relationship. A direct causality relationship was found in Brazil, which has similar characteristics to Türkiye, in terms of ICT exits, while a reverse causality relationship was found in Latvia and Lithuania.

Suggested Citation

  • Ahmet Unlu & Seckin Kabak, 2024. "The Effect of information and Communication Technologies on Unemployment: the Case of Selected OECD Countries," International Econometric Review (IER), Econometric Research Association, vol. 16(2), pages 127-147, December.
    • Handle: RePEc:erh:journl:v:16:y:2024:i:2:p:127-147
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    More about this item

    Keywords

    Information and Communication Technologies; Unemployment; OECD; Causality; Time Series;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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