Are ICT Displacing Workers? Evidence from Seven European Countries

30 Pages Posted: 8 Apr 2015  

Smaranda Pantea

European Union - Institute for Prospective Technological Studies (IPTS)

Federico Biagi

Bocconi University - Department of Economics

Anna Sabadash

European Union - Eurostat

Date Written: July 1, 2014

Abstract

This paper examines whether ICT substitute labour and reduce the demand for labour. We used firm-level comparable data separately for firms in manufacturing, services and ICT-producing sectors from seven European countries. We adopted a common methodology and applied it to a unique dataset provided by the ESSLait Project on Linking Microdata. We controlled for unobservable time-invariant firm-specific effects and we found no evidence of a negative relationship between intensity of ICT use and employment growth. We read this as an indication that ICT use is not reducing employment among ICT using firms.

Keywords: Labour Demand, Technology Change, ICT

JEL Classification: J23, J24, O33, L86

Suggested Citation

Pantea, Smaranda and Biagi, Federico and Sabadash, Anna, Are ICT Displacing Workers? Evidence from Seven European Countries (July 1, 2014). Available at SSRN: https://ssrn.com/abstract=2591076

Smaranda Pantea (Contact Author)

European Union - Institute for Prospective Technological Studies (IPTS) ( email )

Edificio Expo, C
Inca Garcilaso, s/n
Sevilla, E-41092
Spain

Federico Biagi

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Anna Sabadash

European Union - Eurostat ( email )

Luxembourg, L-2920
Luxembourg

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