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Is E-commerce an opportunity for boosting employment in developing countries? a study for the Chilean case

Author

Listed:
  • Manuel Pérez-Trujillo

    (Universidad Católica del Norte)

  • Camila Alvayay Torrejón

    (Universidad Católica del Norte)

  • Maricruz Lacalle Calderón

    (Universidad Autónoma de Madrid, C/ Francisco Tomás y Valiente)

Abstract

Little is known about how e-commerce impacts a firm’s performance and hiring decisions. The aim of this study was to empirically assess the impact of e-commerce on employment, labor demand and the skill composition of labor in a developing economy. We used Chile as a case study of a developing economy in Latin America that has seen e-commerce sales increase tenfold in the last decade. Data on e-commerce and employment for around 6,000 firms from the Chilean Ministry of Economy's Longitudinal Survey of Companies (ELE) for 2017 were used. Our identification technique was based on a matching procedure between firms that use e-commerce and those that do not. The fundamental aim was to compare labor demand among similar firms from multiple aspects, with the exception of e-commerce usage. Our results showed that e-commerce has a positive effect not only on total employment but also on hiring in Chilean firms by boosting the demands for both high and medium-skilled labor.

Suggested Citation

  • Manuel Pérez-Trujillo & Camila Alvayay Torrejón & Maricruz Lacalle Calderón, 2024. "Is E-commerce an opportunity for boosting employment in developing countries? a study for the Chilean case," Asia-Pacific Journal of Regional Science, Springer, vol. 8(4), pages 1077-1110, December.
    • Handle: RePEc:spr:apjors:v:8:y:2024:i:4:d:10.1007_s41685-024-00356-4
    DOI: 10.1007/s41685-024-00356-4
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    References listed on IDEAS

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    More about this item

    Keywords

    E-commerce; Developing economy; ICTs; Employment; Labor demand;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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