Investment in ICT, Productivity, and Labor Demand : The Case of Argentina
This paper explores the impact of the adoption of information and communications technology on firm performance and labor market outcomes using a firm survey from the manufacturing sector in Argentina. The findings are that at the firm level adopti...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/702841517405409883/Investment-in-ICT-productivity-and-labor-demand-the-case-of-Argentina http://hdl.handle.net/10986/29290 |
| Summary: | This paper explores the impact of the
adoption of information and communications technology on
firm performance and labor market outcomes using a firm
survey from the manufacturing sector in Argentina. The
findings are that at the firm level adoption of information
and communications technology leads to increases in firm
productivity and wages, and that the effects are
heterogeneous across firms, being larger for initially
high-productivity and high-skill firms. The increase in
wages occurs even after controlling for skill composition,
implying that there are productivity and rent-sharing
mechanisms at play. Further findings show that adoption of
information and communications technology is associated with
employment turnover as captured by the replacement of
workers, elimination of occupations, creation of new
occupations, and decrease in the share of unskilled workers,
supporting the view that ICT is complementary with skilled
labor. At the same time, there is an increase in employment
across all skill categories. This result is compatible with
positive output effects that drive employment, and with job
turnover within the unskilled group. |
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