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Digital transformation, COVID-19, and the future of work

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  • Schilirò, Daniele

Abstract

The COVID-19 pandemic has caused an acceleration of digital transformation, forcing countries and organizations around the world to make big changes in people’s lives. This paper analyses the diffusion of the digital economy and highlights the capabilities and readiness of economies to undertake the process of digital transformation. It also points out that the digital transformation is profoundly changing the global economy and society, not necessarily benefiting everyone. The challenge is to avoid the risk that the new digital system creates a more “restricted” economic and social environment, with the digital divide affecting many people across the world. The study also explores the implications of both digitization and digital technologies on the labor market and future jobs. COVID-19 and digital transformation have overturned assumptions about how individuals work by demanding new tasks and skills from employees. The paper emphasizes that any process of automation involves substituting machines for labor and leads to the displacement of workers, although there are counterbalancing forces. At the same time, digital transformation and its processes offer opportunities to create new tasks and new professional figures. However, the key to success for a fair and inclusive digital transformation lies in the joint efforts of state, business, and people.

Suggested Citation

  • Schilirò, Daniele, 2021. "Digital transformation, COVID-19, and the future of work," MPRA Paper 108817, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:108817
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    File URL: https://mpra.ub.uni-muenchen.de/108817/1/MPRA_paper_108817.pdf
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    References listed on IDEAS

    as
    1. Daniele SCHILIRÒ, 2012. "Knowledge-Based Economies And The Institutional Environment," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 3(1), pages 42-50.
    2. Schilirò, Daniele, 2020. "Towards digital globalization and the covid-19 challenge," MPRA Paper 100504, University Library of Munich, Germany, revised May 2020.
    3. Daron Acemoglu & Pascual Restrepo, 2018. "Artificial Intelligence, Automation, and Work," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 197-236, National Bureau of Economic Research, Inc.
    4. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    5. Ajay Agrawal & Joshua Gans & Avi Goldfarb, 2019. "The Economics of Artificial Intelligence: An Agenda," NBER Books, National Bureau of Economic Research, Inc, number agra-1.
    6. Agrawal, Ajay & Gans, Joshua & Goldfarb, Avi (ed.), 2019. "The Economics of Artificial Intelligence," National Bureau of Economic Research Books, University of Chicago Press, number 9780226613338, September.
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    Cited by:

    1. Schilirò, Daniele, 2023. "Technological progress and the future of work," MPRA Paper 117927, University Library of Munich, Germany.

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    More about this item

    Keywords

    digital transformation; digital technologies; COVID-19; digital divide; smart working; job displacement; future jobs;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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