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The Effects of Changes in the Unemployment Compensation System on the Adoption of IT by Older Workers

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  • Spitz, Alexandra

Abstract

Two main hypotheses can be found in literature on why elderly workers have a lower probability of using information technology than their younger peers: lower learning capabilities and reduced incentives to invest in human capital. I use law changes in the unemployment compensation system enacted in Germany during the 1980s and 1990s to demonstrate that ?incentives? are more important than ?capabilities? in determining variation in IT usage. Elderly workers only fell behind the IT usage rates of their younger peers during the 1980s and 1990s, when unemployment benefits got increasingly generous, thereby reducing their incentives to invest in human capital.

Suggested Citation

  • Spitz, Alexandra, 2005. "The Effects of Changes in the Unemployment Compensation System on the Adoption of IT by Older Workers," ZEW Discussion Papers 05-40, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:3283
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    References listed on IDEAS

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    6. Spitz, Alexandra, 2004. "Are Skill Requirements in the Workplace Rising? Stylized Facts and Evidence on Skill-Biased Technological Change," ZEW Discussion Papers 04-33, ZEW - Leibniz Centre for European Economic Research.
    7. Borghans, L. & ter Weel, B.J., 2002. "Do older workers have more trouble using a computer than younger workers?," ROA Research Memorandum 1E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    8. Leora Friedberg, 2003. "The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use," ILR Review, Cornell University, ILR School, vol. 56(3), pages 511-529, April.
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    10. Berkel, Barbara & Börsch-Supan, Axel, 2004. "Pension Reform in Germany:," Sonderforschungsbereich 504 Publications 04-62, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
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    Citations

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    Cited by:

    1. Sandrine Levasseur, 2008. "Progrès technologique et employabilité des seniors," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 155-184.
    2. repec:spo:wpecon:info:hdl:2441/6144 is not listed on IDEAS
    3. repec:hal:spmain:info:hdl:2441/6144 is not listed on IDEAS
    4. Uschi Backes-Gellner & Stephan Veen, 2008. "Ageing Workforces and Challenges to Human Resource Management in German Firms," Palgrave Macmillan Books, in: Harald Conrad & Viktoria Heindorf & Franz Waldenberger (ed.), Human Resource Management in Ageing Societies, chapter 2, pages 13-28, Palgrave Macmillan.
    5. repec:hal:wpspec:info:hdl:2441/6144 is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/9825 is not listed on IDEAS

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    More about this item

    Keywords

    differences-in-differences; computer adoption by older workers; changes in unemployment compensation system;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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