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Software Adoption, Employment Composition, and the Skill Content of Occupations in Chilean Firms

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  • Rita K. Almeida
  • Ana M. Fernandes
  • Mariana Viollaz

Abstract

We contribute to the technology, skills, and jobs debate by exploiting a novel dataset for Chilean firms between 2007 and 2013, with information on the firms’ adoption of complex software used in client management, production, or administration and business software packages. Instrumental variables estimates show that, in the medium-run, adoption of this complex software reallocates employment away from professional and technical workers, toward administrative and unskilled workers (production and services). Adoption also increases the use of routine and manual tasks and reduces that of abstract tasks within firms. The contrast between ours and previous findings shows that labour market impacts of technology adoption hinge on the type of technology and its complementarity with the skills content of occupations.

Suggested Citation

  • Rita K. Almeida & Ana M. Fernandes & Mariana Viollaz, 2020. "Software Adoption, Employment Composition, and the Skill Content of Occupations in Chilean Firms," Journal of Development Studies, Taylor & Francis Journals, vol. 56(1), pages 169-185, January.
    • Handle: RePEc:taf:jdevst:v:56:y:2020:i:1:p:169-185
    DOI: 10.1080/00220388.2018.1546847
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    Cited by:

    1. Barth, Erling & Davis, James C. & Freeman, Richard B. & McElheran, Kristina, 2023. "Twisting the demand curve: Digitalization and the older workforce," Journal of Econometrics, Elsevier, vol. 233(2), pages 443-467.
    2. Axenbeck, Janna & Berner, Anne & Kneib, Thomas, 2022. "What drives the relationship between digitalization and industrial energy demand? Exploring firm-level heterogeneity," ZEW Discussion Papers 22-059, ZEW - Leibniz Centre for European Economic Research.
    3. Piotr Lewandowski & Wojciech Szymczak, 2024. "Automation, Trade Unions and Involuntary Atypical Employment," IBS Working Papers 02/2024, Instytut Badan Strukturalnych.
    4. Bennett, Fidel & Escudero, Verónica & Liepmann, Hannah & Podjanin, Ana, 2022. "Using Online Vacancy and Job Applicants' Data to Study Skills Dynamics," VfS Annual Conference 2022 (Basel): Big Data in Economics 264023, Verein für Socialpolitik / German Economic Association.
    5. Cecilia Peluffo & Mariana Viollaz, 2021. "Intra-household exposure to labor market risk in the time of Covid-19: lessons from Mexico," Review of Economics of the Household, Springer, vol. 19(2), pages 327-351, June.

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