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...

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Main Authors: Brambilla, Irene, Tortarolo, Darío
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
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
id okr-10986-29290
recordtype oai_dc
spelling okr-10986-292902021-06-08T14:42:48Z Investment in ICT, Productivity, and Labor Demand : The Case of Argentina Brambilla, Irene Tortarolo, Darío ICT LABOR DEMAND LABOR PRODUCTIVITY LABOR MARKET INFORMATION AND COMMUNICATION TECHNOLOGY TECHNOLOGY ADOPTION SKILLED LABOR EMPLOYMENT JOB TURNOVER 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. 2018-01-31T20:44:33Z 2018-01-31T20:44:33Z 2018-01 Working Paper http://documents.worldbank.org/curated/en/702841517405409883/Investment-in-ICT-productivity-and-labor-demand-the-case-of-Argentina http://hdl.handle.net/10986/29290 English Policy Research Working Paper;No. 8325 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 Latin America & Caribbean Argentina
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ICT
LABOR DEMAND
LABOR PRODUCTIVITY
LABOR MARKET
INFORMATION AND COMMUNICATION TECHNOLOGY
TECHNOLOGY ADOPTION
SKILLED LABOR
EMPLOYMENT
JOB TURNOVER
spellingShingle ICT
LABOR DEMAND
LABOR PRODUCTIVITY
LABOR MARKET
INFORMATION AND COMMUNICATION TECHNOLOGY
TECHNOLOGY ADOPTION
SKILLED LABOR
EMPLOYMENT
JOB TURNOVER
Brambilla, Irene
Tortarolo, Darío
Investment in ICT, Productivity, and Labor Demand : The Case of Argentina
geographic_facet Latin America & Caribbean
Argentina
relation Policy Research Working Paper;No. 8325
description 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.
format Working Paper
author Brambilla, Irene
Tortarolo, Darío
author_facet Brambilla, Irene
Tortarolo, Darío
author_sort Brambilla, Irene
title Investment in ICT, Productivity, and Labor Demand : The Case of Argentina
title_short Investment in ICT, Productivity, and Labor Demand : The Case of Argentina
title_full Investment in ICT, Productivity, and Labor Demand : The Case of Argentina
title_fullStr Investment in ICT, Productivity, and Labor Demand : The Case of Argentina
title_full_unstemmed Investment in ICT, Productivity, and Labor Demand : The Case of Argentina
title_sort investment in ict, productivity, and labor demand : the case of argentina
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/702841517405409883/Investment-in-ICT-productivity-and-labor-demand-the-case-of-Argentina
http://hdl.handle.net/10986/29290
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