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Impact of digitalisation on labour productivity in the EU

Author

Listed:
  • Giuseppe Cinquegrana
  • Giovanni De Luca
  • Paolo Mazzocchi
  • Claudio Quintano
  • Antonella Rocca

Abstract

This study attempts to investigate the impact of digitalisation on labour productivity in a sample of EU countries over the years 2014-2019. This sample has been fixed as a function of data availability collected by the European Commission through the digital economic and society index (DESI). Panel data analysis reveals a strong impact of digitalisation on labour productivity. Nevertheless, instrumental variable estimates suggest that digitalisation alone cannot significantly increase labour productivity. We find sizable differences across countries, with the Southern and Eastern European countries lagging behind the Central and Northern European countries, probably because of the low public investment in research and development (R&D) and human capital and the smaller size of firms. Findings suggest, in turn, that it would be useful for policymakers to provide enough support to small-sized firms in R&D and human resources management, especially in Southern and Eastern European countries.

Suggested Citation

  • Giuseppe Cinquegrana & Giovanni De Luca & Paolo Mazzocchi & Claudio Quintano & Antonella Rocca, 2024. "Impact of digitalisation on labour productivity in the EU," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 35(6), pages 1-39.
    • Handle: RePEc:ids:ijbire:v:35:y:2024:i:6:p:1-39
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