a column by James Harrigan, Ariell Reshef and Farid Toubal for VOX: CEPR’s Policy Portal
Economists have studied the nexus between labour demand, globalisation, and technology adoption for decades, but quantifying the relative importance of these factors is challenging.
Using firm-level data from France, this column proposes a new measure of productivity based on the number of workers in technology-related occupations.
It finds large effects of importing, ICT, and R&D on the relative demand for skilled workers through their effects on productivity. Interestingly, the demand for both skilled and unskilled workers rises when firms hire ‘techies’ or engage in offshoring.
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