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Special Issue: Digitalisation and the Labor Market
Editorial Enzo Weber, Lutz Bellmann and Joachim Möller: Special Issue: Digitalisation and the Labor Market JBNST - Vol. 239/3 - 2019, pp. 361-362.
Original Articles Anke Mönnig, Tobias Maier and Gerd Zika: Economy 4.0 – Digitalisation and Its Effect on Wage Inequality JBNST - Vol. 239/3 - 2019, pp. 363-398.
+ show abstract- hide abstractThis paper contributes to the discussion of the impact of digital
transformation on labour markets by analysing the impact on wage inequality.
The novelty of this paper is on the one hand the quantitative approach that
applies a macroeconometric input-output model which accounts for circular
flow in the economy and feedback loops. Most of the studies on wage inequality
and digital transformation focus on ex-post analysis. The applied quantitative
model used in this paper also allows to perform ex-ante analysis. This is
important, as economy 4.0 is not yet reflected in current datasets which makes
statements about the impact of economy 4.0 on wage inequality on basis of expost analysis difficult.
On the other hand, it uses the inequality measures S80/S20 that has been
applied to a unique dataset on employment and wages. The dataset differentiates on industry and occupational level. That allows to identify industry*occupation combination and their location in the upper and/or lower 20 % share
ratio of wage distribution. The analysis demonstrates that digital transformation
increases wage inequality, however to a low extent. The increase in wage
inequality is already implemented in the reference scenario due to structural
and demographic change. Digital transformation strengthens the impact of
structural change on wage inequality. Especially in the long run, wage inequality rises stronger than in the reference scenario.
Because the digital transformation scenario does not confirm the polarization hypothesis, the impact of economy 4.0 on wage inequality remains rather
low. The increasing demand of high-skilled employees is reflected in an increase
in wage inequality. However, the relatively low impact of digitalisation on lowskilled employees prevents a stronger increase in wage inequality.
Antonio G. Gómez-Plana and María C. Latorre: Digitalization, Multinationals and Employment: An Empirical Analysis of Their Causal Relationships JBNST - Vol. 239/3 - 2019, pp. 399-440.
+ show abstract- hide abstractThis study measures the effects of digitalization related to Information
and Communication Technologies (ICT) investment on employment and other
economic variables according to firms‘ ownership. We present two computable
general equilibrium models (with full employment and with unemployment)
which differentiate two types of firms: National and foreign multinationals
(MNEs). Both types of firms allow for the substitution between labour and ICT
capital. We conclude that ICT investments significantly create jobs and raise real
wages, GDP and welfare. The aggregate positive effects are stronger for ICT
investment in national firms than in foreign MNEs although the sign of some
sectoral effects can be negative. We also analyze the role of wage flexibility in
this context, with the most favorable results related to scenarios where wages
are more rigid for both cases, when investors are national firms or foreign MNEs.
The model is applied to the case of Spain, a country with a high unemployment
rate where ICT investment has been large since the mid 1990s. Elisa Gerten, Michael Beckmann and Lutz Bellmann: Controlling Working Crowds: The Impact of Digitalization on Worker Autonomy and Monitoring Across Hierarchical Levels JBNST - Vol. 239/3 - 2019, pp. 441-482.
+ show abstract- hide abstractThis study investigates the impact of information and communication
technologies (ICT) on worker autonomy and monitoring using the second wave of
the German Linked Personnel Panel, a linked employer-employee data set. From a
theoretical point of view, the impact of ICT on workplace organization is ambiguous. On the one hand, the fast diffusion of ICT among employees makes it possible
to monitor professional activities, leading to greater centralization. On the other
hand, ICT enable employees to work more autonomously, so that workplace
organization becomes more decentralized. Based on ordinary least squares and
instrumental variable estimates, we find that ICT promotes both centralization
and decentralization tendencies. Furthermore, managerial employees are more
affected by ICT-induced monitoring and autonomy than their non-managerial
counterparts. Finally, the effect of digital ICT on employee autonomy is more
pronounced than the corresponding effect on employee monitoring. Again, this
does especially hold for managerial employees. All in all, our results support the
view that unlike prior technological revolutions digitalization primarily affects
the employment prospects and working conditions of employees at medium and
higher hierarchical levels. Sabrina Genz, Markus Janser and Florian Lehmer: The Impact of Investments in New Digital Technologies on Wages – Worker-Level Evidence from Germany JBNST - Vol. 239/3 - 2019, pp. 483-522.
+ show abstract- hide abstractThe strong rise of digitalization, automation, machine learning and
other related new digital technologies has led to an intense debate about their
societal impacts. The transitions of occupations and the effects on labor demand
and workers’ wages are still open questions. Research projects dealing with this
issue often face a lack of data on the usage of new digital technologies. This
paper uses a novel linked employer–employee data set that contains detailed
information on establishments’ technological upgrading between 2011 and 2016,
a recent period of rapid technological progress. Furthermore, we are the first to
develop a digital tools index based on the German expert database BERUFENET.
The new index contains detailed information on the work equipment that is used
by workers. Hence, we observe the degree of digitalization on both the establishment level and the worker level. The data allow us to investigate the impact of
technology investments on the wage growth of employees within establishments. Overall, the results from individual level fixed effects estimates suggest
that investments in new digital technologies at the establishment level positively
affect the wages of the establishments’ workers. Sector-specific results show that
investments in new digital technologies increase wages in knowledge intensive
production establishments and non-knowledge intensive services. The wage
growth effects of employees in digital pioneer establishments relative to the
specific reference group of workers in digital latecomer establishments are
most pronounced for low- and medium-skilled workers.
Sabrina Genz, Lutz Bellmann and Britta Matthes: Do German Works Councils Counter or Foster the Implementation of Digital Technologies? JBNST - Vol. 239/3 - 2019, pp. 523-564.
+ show abstract- hide abstractAs works councils’ information, consultation and co-determination
rights affect the decision process of the management, works councils play a key
role in the implementation of digital technologies in establishments. However,
previous research focuses on the potential of digital technologies to substitute for
labor and its impact on labor market outcomes of workers. This paper adds the
role of industrial relations to the existing literature by analyzing the impact of
works councils on the implementation of digital technologies. Theoretically, the
role of works councils in the digital transformation is ambiguous. Using establishment data from the IAB Establishment Survey of 2016 combined with individual
employee data from the Federal Employment Agency and occupational level data
about the physical job exposure, empirical evidence indicates an ambivalent
position of works councils towards digital technologies. The sole existence of
works councils is associated with statistically significant lower equipment levels
with digital technologies. However, works councils seem to foster the equipment
with digital technologies in those establishments, which employ a high share of
workers who are conducting physical demanding job activities. Thus, this study
highlights the importance of establishment-level workforce representation for the
digital adoption process within Germany. Uma Rani and Marianne Furrer: On-Demand Digital Economy: Can Experience Ensure Work and Income Security for Microtask Workers? JBNST - Vol. 239/3 - 2019, pp. 565-597.
+ show abstract- hide abstractDigital labour platforms have been increasingly gaining popularity
over the past decade. In particular, there has been much debate about workers’
motivations and working conditions on microtask platforms. There exists little
evidence on whether dependence on digital microtask platforms provides workers with work and income security in the long term and whether it provides
opportunities for skill development. This paper explores the extent to which the
seemingly flexible platform work ensures work and income security and provides opportunities for skill development for workers with different levels of
experience, based on novel survey data collected on five globally operating
microtask platforms and in-depth interviews with workers. The findings show
that despite high financial dependence on this work, returns to experience on
the platform are meagre in terms of earnings, and highly experienced workers
face the same risks as new entrants with regard to discrimination, high work
intensity, lack of autonomy and control over work, and social protection. There
is also a skills gap between the nature of tasks available on these microtask
platforms and the workers’ education levels. Finally, experience does not ensure
that workers have the opportunities to undertake complex and challenging
tasks, and the possibilities to develop their skills and improve career prospects
are limited.
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