Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity
This paper develops a theoretical framework that expands the task-based models of technical progress and labor markets to allow for firm heterogeneity and wages that vary across firms. The model is compatible with the empirical observation that mor...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/217701517406450447/Digital-technology-adoption-and-jobs-a-model-of-firm-heterogeneity http://hdl.handle.net/10986/29292 |
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okr-10986-292922021-06-08T14:42:48Z Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity Brambilla, Irene ICT JOBS TECHNOLOGY ADOPTION FIRM HETEROGENEITY FIRM PRODUCTIVITY INFORMATION AND COMMUNICATION TECHNOLOGY LABOR MARKET SKILLED LABOR WAGE GAP INEQUALITY This paper develops a theoretical framework that expands the task-based models of technical progress and labor markets to allow for firm heterogeneity and wages that vary across firms. The model is compatible with the empirical observation that more productive firms are larger, are more skill intensive, and pay higher wages across skill categories. The model predicts that the decision to invest in information and communications technology depends on firm size and labor market characteristics. As a result of investment in information and communications technology firms grow, become more intensive in complex tasks, become more skilled intensive, and employ more skilled workers as long as skilled labor is complementary to information and communications technology. Employment of unskilled workers increases as well, provided that firm output growth is sufficiently high to overcome the negative substitution effect. Workers who remain employed are better off because their wage increases with information and communications technology. To the extent that skilled workers have more bargaining power than unskilled workers, or that their wage scheme is more tied to firm performance, wage inequality at the firm level increases with information and communications technology. 2018-01-31T20:44:47Z 2018-01-31T20:44:47Z 2018-01 Working Paper http://documents.worldbank.org/curated/en/217701517406450447/Digital-technology-adoption-and-jobs-a-model-of-firm-heterogeneity http://hdl.handle.net/10986/29292 English Policy Research Working Paper;No. 8326 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
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Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ICT JOBS TECHNOLOGY ADOPTION FIRM HETEROGENEITY FIRM PRODUCTIVITY INFORMATION AND COMMUNICATION TECHNOLOGY LABOR MARKET SKILLED LABOR WAGE GAP INEQUALITY |
| spellingShingle |
ICT JOBS TECHNOLOGY ADOPTION FIRM HETEROGENEITY FIRM PRODUCTIVITY INFORMATION AND COMMUNICATION TECHNOLOGY LABOR MARKET SKILLED LABOR WAGE GAP INEQUALITY Brambilla, Irene Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity |
| relation |
Policy Research Working Paper;No. 8326 |
| description |
This paper develops a theoretical
framework that expands the task-based models of technical
progress and labor markets to allow for firm heterogeneity
and wages that vary across firms. The model is compatible
with the empirical observation that more productive firms
are larger, are more skill intensive, and pay higher wages
across skill categories. The model predicts that the
decision to invest in information and communications
technology depends on firm size and labor market
characteristics. As a result of investment in information
and communications technology firms grow, become more
intensive in complex tasks, become more skilled intensive,
and employ more skilled workers as long as skilled labor is
complementary to information and communications technology.
Employment of unskilled workers increases as well, provided
that firm output growth is sufficiently high to overcome the
negative substitution effect. Workers who remain employed
are better off because their wage increases with information
and communications technology. To the extent that skilled
workers have more bargaining power than unskilled workers,
or that their wage scheme is more tied to firm performance,
wage inequality at the firm level increases with information
and communications technology. |
| format |
Working Paper |
| author |
Brambilla, Irene |
| author_facet |
Brambilla, Irene |
| author_sort |
Brambilla, Irene |
| title |
Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity |
| title_short |
Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity |
| title_full |
Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity |
| title_fullStr |
Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity |
| title_full_unstemmed |
Digital Technology Adoption and Jobs : A Model of Firm Heterogeneity |
| title_sort |
digital technology adoption and jobs : a model of firm heterogeneity |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/217701517406450447/Digital-technology-adoption-and-jobs-a-model-of-firm-heterogeneity http://hdl.handle.net/10986/29292 |
| _version_ |
1764468979533873152 |