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It's Not Just the ATMs: Technology, Firm Strategies, Jobs, and Earnings in Retail Banking

Author

Listed:
  • Larry W. Hunter
  • Annette Bernhardt
  • Katherine L. Hughes
  • Eva Skuratowicz

Abstract

The authors examine trends in job content and earnings in selected jobs in two American banks. Firm restructuring and technological changes resulted in higher earnings for college-educated workers. The banks followed different strategies in implementing these changes for lower-skill jobs, with different effects on bank tellers in particular. The authors conclude that technology enables workplace reform but does not determine its effect on jobs and earnings; these effects are contingent on managerial strategies. This focus on organizational processes and managerial strategy provides a complementary approach to accounts of growing inequality that center solely on the role of individual skills and technological change.

Suggested Citation

  • Larry W. Hunter & Annette Bernhardt & Katherine L. Hughes & Eva Skuratowicz, 2000. "It's Not Just the ATMs: Technology, Firm Strategies, Jobs, and Earnings in Retail Banking," Center for Financial Institutions Working Papers 00-31, Wharton School Center for Financial Institutions, University of Pennsylvania.
    • Handle: RePEc:wop:pennin:00-31
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    File URL: http://fic.wharton.upenn.edu/fic/papers/00/0031.pdf
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    References listed on IDEAS

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    Blog mentions

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    1. ATMs and unemployment – Why Obama has a point
      by Don Arthur in Club Troppo on 2011-06-19 09:51:02

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    Cited by:

    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    2. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2012. "Americans Do IT Better: US Multinationals and the Productivity Miracle," American Economic Review, American Economic Association, vol. 102(1), pages 167-201, February.
    3. Takahito Kanamori & Kazuyuki Motohashi, 2006. "Centralization or Decentralization of Decision Rights? Impact on IT Performance of Firms," Discussion papers 06032, Research Institute of Economy, Trade and Industry (RIETI).
    4. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    5. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 2012-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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