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Relative demand for highly skilled workers and use of different ICT technologies

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  • Martin Falk
  • Federico Biagi

Abstract

This study investigates the relationship between several indicators of ICT usage and digitalization and the relative demand for highly skilled workers. The data are based on two-digit industry-level information on seven European countries for the period 2001–2010. For manufacturing industries, static fixed-effects models show that the share of employees with internet broadband access, the diffusion of mobile internet access and the use of enterprise resource planning (ERP) systems and automatic data exchange combined with electronic invoicing are all significantly and positively related to skill intensity in the industries observed. For service industries, only mobile internet usage intensity is significant. Specifically for manufacturing, a 10-point increase in the percentage of firms using ERP systems is associated with an increase in the share of highly skilled workers by 0.4 percentage points. These estimates indicate that the increase in ERP system usage during the period studied accounted for 30% of the increase in the share of workers with a tertiary degree across manufacturing industries and countries. The results are robust with respect to the estimation method and the potential endogeneity of ICT.

Suggested Citation

  • Martin Falk & Federico Biagi, 2017. "Relative demand for highly skilled workers and use of different ICT technologies," Applied Economics, Taylor & Francis Journals, vol. 49(9), pages 903-914, February.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:903-914
    DOI: 10.1080/00036846.2016.1208357
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    References listed on IDEAS

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    1. Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: a Happy Marriage or a Dangerous Liaison? A Literature Review," JRC Research Reports JRC76143, Joint Research Centre.
    2. Anna Sabadash, 2013. "ICT-induced Technological Progress and Employment: A Literature Review," JRC Working Papers on Digital Economy 2013-07, Joint Research Centre.
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    Cited by:

    1. Krol, Felix & Saeed, Muhammad Amad & Kersten, Wolfgang, 2020. "A holistic digitalization KPI framework for the aerospace industry," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Data Science and Innovation in Supply Chain Management: How Data Transforms the Value Chain. Proceedings of the Hamburg International Conference of Lo, volume 29, pages 797-847, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    2. Maarten Goos & Melanie Arntz & Ulrich Zierahn & Terry Gregory & Stephanie Carretero Gomez & Ignacio Gonzalez Vazquez & Koen Jonkers, 2019. "The Impact of Technological Innovation on the Future of Work," JRC Working Papers on Labour, Education and Technology 2019-03, Joint Research Centre.
    3. Pantea, Smaranda & Sabadash, Anna & Biagi, Federico, 2017. "Are ICT displacing workers in the short run? Evidence from seven European countries," Information Economics and Policy, Elsevier, vol. 39(C), pages 36-44.
    4. Eric Bartelsman & Eva Hagsten & Michael Polder, 2018. "Micro Moments Database for cross‐country analysis of ICT, innovation, and economic outcomes," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 626-648, September.
    5. Haller, Stefanie A. & Lyons, Sean, 2019. "Effects of broadband availability on total factor productivity in service sector firms: Evidence from Ireland," Telecommunications Policy, Elsevier, vol. 43(1), pages 11-22.
    6. Henrik Schwabe & Fulvio Castellacci, 2020. "Automation, workers’ skills and job satisfaction," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-26, November.
    7. Hüseyin Taştan & Feride Gönel, 2020. "ICT labor, software usage, and productivity: firm-level evidence from Turkey," Journal of Productivity Analysis, Springer, vol. 53(2), pages 265-285, April.
    8. Díaz, Guillermo Arenas & Barge-Gil, Andrés & Heijs, Joost, 2020. "The effect of innovation on skilled and unskilled workers during bad times," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 141-158.
    9. Filippo Pusterla & Ursula Renold, 2022. "Does ICT affect the demand for vocationally educated workers?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 158(1), pages 1-22, December.
    10. Ying Wu & Yuanyue Deng, 2024. "Does digital transformation crowd out the employment of lower skill labor?," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 726-748, July.
    11. Pierre LESUISSE, 2024. "Education, public expenditure and economic growth under the prism of performance," Working Papers of BETA 2024-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    12. Biagi, Federico & Falk, Martin, 2017. "The Impact of ICT and E-Commerce Activities on Employment in Europe," Ratio Working Papers 285, The Ratio Institute.
    13. Pierre Lesuisse, 2022. "Education, public expenditure and economic growth under the prism of performance," Working Papers hal-03685311, HAL.
    14. Filippo Pusterla & Thomas Bolli, 2019. "Is Technological Change Really Skills-Biased? Firm-level Evidence of the Complementarities between ICT and Workers’ Education," KOF Working papers 19-468, KOF Swiss Economic Institute, ETH Zurich.

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