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Technology, employment and skills

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  • Valeria Cirillo

Abstract

This article investigates the relationships between technological change and employment considering the dynamics of four major professional groups - Managers, Clerks, Craft and Manual workers – defined on the basis of ISCO classes. The aim is to move beyond skill-biased and task-based views of the impact of technical change on skills and to identify the structural determinants of employment changes. A model is developed explaining changes in jobs as a result of changes in demand – total, domestic and foreign –, wages, the importance of innovation in products and processes and the role of the international fragmentation of production. The empirical analysis is carried out on manufacturing and service industries of major European countries over the 2000–2014 period. Results show that moving from aggregate employment to the dynamics of professional groups major diversities emerge; managers – for instance – are the main beneficiaries from product innovations, while clerks, craft and manual workers are negatively affected by the introduction of new processes. Separate estimations are also carried out for high and low tech industries and for Northern and Southern European countries, identifying a variety of ways in which patterns of innovation and structural change affect jobs in specific professional groups.

Suggested Citation

  • Valeria Cirillo, 2017. "Technology, employment and skills," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(8), pages 734-754, November.
    • Handle: RePEc:taf:ecinnt:v:26:y:2017:i:8:p:734-754
    DOI: 10.1080/10438599.2017.1258765
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    References listed on IDEAS

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    1. Freeman, Chris & Louca, Francisco, 2002. "As Time Goes By: From the Industrial Revolutions to the Information Revolution," OUP Catalogue, Oxford University Press, number 9780199251056.
    2. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
    3. Marco Vivarelli, 1995. "The Economics of Technology and Employment," Books, Edward Elgar Publishing, number 458.
    4. Freeman, Richard B. & Katz, Lawrence F. (ed.), 1995. "Differences and Changes in Wage Structures," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261607.
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    1. Nascia, Leopoldo & Pianta, Mario, 2018. "Research and innovation policy in Italy," MPRA Paper 89510, University Library of Munich, Germany.
    2. Krzywdzinski, Martin & Butollo, Florian, 2022. "Combining Experiential Knowledge and Artificial Intelligence. The Digital Transformation of a Traditional Machine-Building Company," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 33(2), pages 161-184.
    3. Andrea Coveri & Mario Pianta, 2019. "The Structural Dynamics of Income Distribution:Technology, Wages and Profits," Working Papers 1901, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    4. Ayhan, Fatih & Elal, Onuray, 2023. "The IMPACTS of technological change on employment: Evidence from OECD countries with panel data analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    5. Krzywdzinski, Martin & Butollo, Florian, 2022. "Combining Experiential Knowledge and Artificial Intelligence. The Digital Transformation of a Traditional Machine-Building Company," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(2), pages 161-184.
    6. Armanda Cetrulo & Dario Guarascio, 2018. "Weaker Jobs, Weaker Innovation. Exploring The Temporary Employment-Product Innovation Nexus," Working Papers 0032, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    7. Mario Pianta, 2018. "Technology and Employment: Twelve Stylised Facts for the Digital Age," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 189-225, June.
    8. Valeria Cirillo & Marta Fana & Dario Guarascio, 2017. "Labour market reforms in Italy: evaluating the effects of the Jobs Act," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 211-232, August.
    9. Pianta, Mario & Coveri, Andrea & Reljic, Jelena, 2021. "The Sectoral Innovation Database, 1994-2016. Methodological Notes," MPRA Paper 106780, University Library of Munich, Germany.
    10. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2018. "Technology and Occupations in Business Cycles," Sustainability, MDPI, vol. 10(2), pages 1-25, February.
    11. Chandan Sharma & Ritesh Kumar Mishra, 2023. "Imports, technology, and employment: Job creation or creative destruction," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 152-170, January.
    12. Su, Chi-Wei & Yuan, Xi & Umar, Muhammad & Lobonţ, Oana-Ramona, 2022. "Does technological innovation bring destruction or creation to the labor market?," Technology in Society, Elsevier, vol. 68(C).
    13. Jelena Reljic & Rinaldo Evangelista & Mario Pianta, 2019. "Digital technologies, employment and skills," LEM Papers Series 2019/36, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    14. Coveri, Andrea & Pianta, Mario, 2022. "Drivers of inequality: wages vs. profits in European industries," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 230-242.
    15. Van Roy, Vincent & Vértesy, Dániel & Vivarelli, Marco, 2018. "Technology and employment: Mass unemployment or job creation? Empirical evidence from European patenting firms," Research Policy, Elsevier, vol. 47(9), pages 1762-1776.
    16. Imran Hussain Shah & Konstantinos Kollydas & Pak Yee Lee & Issam Malki & Crystal Chu, 2024. "Does R&D investment drive employment growth? Empirical evidence at industry level from Japan," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 102-118, January.

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