Techies, trade, and skill-biased productivity

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.

Continue reading

---

Automation and job displacement in emerging markets: New evidence

a column by Mitali Das for VOX: CEPR’s Policy Portal

Evidence that routinisation lies behind labour market polarisation has been documented for many developed economies, but less is known about its impact in emerging markets.

This column draws on national censuses and labour surveys for 160 countries between 1960 and 2015 to argue that although large-scale labour market dislocation is not imminent, emerging markets are becoming increasingly exposed to routinisation – and thus labour market polarisation – from the long-term effects of structural transformation and the onshoring of routine-intensive jobs.

Continue reading

---

Are ICT displacing workers in the short run? Evidence from seven European countries

an article by Smaranda Pantea (European Commission, Brussel, Belgium and Ministry of Public Finance, Romania), Anna Sabadash (Eurostat, European Commission, Luxembourg) and Federico Biagi (European Commission, Seville, Spain and University of Padua, Italy) published in Information Economics and Policy Volume 39 (June 2017)

Highlights

• We study the short run substitution effect of ICT use on firms' employment.
• We use highly accurate quantitative measures of ICT use within firms.
• We use a longitudinal dataset containing internationally comparable firm level data for seven European countries, covering manufacturing and services sectors.
• We find no evidence that ICT substitutes labour in the short run.
• The insignificant effect of ICT is very robust across ICT measures, countries and sectors.

Abstract

This paper examines the short run labour substitution effects of using ICT at firm-level in the manufacturing and services sectors in seven European countries, during the period 2007–2010. The data come from a unique dataset provided by the ESSLait Project on Linking Microdata, which contains internationally comparable data based on the production statistics linked at firm level with the novel ICT usage indicators.

We adopt a standard conditional labour demand model and control for unobservable time-invariant firm-specific effects.

The results show that ICT use has a statistically insignificant labour substitution effect and this effect is robust across countries, sectors and measures of ICT use. Our findings suggest that increased use of ICT within firms does not reduce the numbers of workers they employ.

JEL classification: J23, J24, O33, L86

---

New report shows digital skills are required in all types of jobs

via Val Skelton (InformationToday Europe)

The European Commission has just published the final report of the study “ICT for Work: Digital Skills in the Workplace” on the impact of information and communication technologies (ICT) on the transformation of jobs and skills. The evidence shows that digital technologies are used in all types of jobs, also in economic sectors not traditionally related to digitisation e.g. farming, health care, vocational training and construction.

The digital economy is transforming the way people work and the skills they need at work. This represents a major challenge for employers, workers and public authorities. The study presents data and policy recommendations that could support the transformation of the labour market into opportunities for all.

Main findings

• Digital technologies are widely used in workplaces in the European Union. 93% of European workplaces use desktop computers, 94% use broadband technology to access the internet, 75% use portable computers and 63% other portable devices. 22% use intranet platform, 8% automated machine or tools or 5% programmable robots. Larger workplaces report a higher use of digital technologies than smaller ones.
• Most jobs require basic digital skills. Basic digital skills include being able to communicate via email or social media, to create and edit documents digital documents and to search for information, or to protect personal information online. 98% of workplaces require managers and 90% that professionals (e.g. engineers, doctors and nurses, teachers, accountants, software developers, lawyers and journalists), technicians, clerical workers or skilled agricultural workers should have at least basic digital skills. 80% of workplaces require basic digital skills for sales workers. Workplaces also often require basic digital skills for building workers (50% of workplaces), plant machine operators (34%) and even employees in elementary occupations (27%). However, there are still some workplaces that do not consider digital skills to be important for some occupations e.g. craft workers, waiters and cooks.
• Technicians, professionals (both 50%) and managers (30%) are required to have specialist digital skills, especially in larger workplaces.
• The use of ICT has increased significantly in the last five years in more than 90% of workplaces. Micro-sized workplaces are more likely to report limited increase compared to bigger ones.
• Over the last five years, investments in ICT to improve efficiency or business volume increased These investments are more frequent in sectors with traditionally low levels of digital intensity, e.g. agriculture, manufacturing or construction.
• 38% of workplaces report that the lack of digital skills has an impact on their performance. Loss of productivity (46%) and decrease in the number of customers (43%) are the main negative impacts.
• 15% of workplaces report employees lack digital skills. Digital skills gaps are more likely to be found in high- and medium skilled than in low-skilled jobs.
• 88% of workplaces have not taken any action to tackle the lack of digital skills of their employees. Training is the most common action undertaken. High costs seem to be the main barrier encountered when undertaking actions to deal with digital skills gaps.

Recommendations

Apart from analysing digital skills in the workplace the study lists a number of recommendations that have been formulated in consultation with experts and stakeholders.

1. Raise awareness on digital technologies and the need for digital skills to support and improve business performance, productivity and internal organisation, and of the need for digital skills in relation to new digital technologies.
2. Promote access to digital technologies, particularly for micro and small sized companies. Loans, grants and other mechanisms should be used to enhance and support access to digital technologies.
3. Expand the availability of digital skills through the education and training system. Programmes at all levels and sectors of education should be updated and digital skills should be part of the core competences required at every level.
4. Promote access to training to employers through their professional or sectoral organisations and associations, or through governmental channels.
5. Build multi-stakeholder partnerships and agree on a digital skills strategy.
6. Consider diversity and avoid the ‘one-size fits all’ approach in the strategy
7. Include digital skills in a wider skills strategy in which other transversal skills relevant to employers such as soft skills and communication skills are included.
8. Provide access to funding for digital technologies and digital skills development
9. Reduce the digital divide, focusing in particular on the categories of individuals who do not possess digital skills and are consequently at risk of marginalisation not only in the labour market, but also in day-to-day life, which can contribute to social and economic exclusion.

Background

This final report complements the intermediate report of this study “The impact of ICT on job quality: evidence from 12 job profiles” published last year, and presents mostly findings from the ‘European Digital Skills Survey’, carried out among a representative sample of 7,800 workplaces which are statistically representative of 13,803,113 workplaces in the whole European Union (EU28) in 12 economic sectors with different levels of digital intensity. These workplaces employ a total of 150,563,540 employees in different job roles.

Further information

ICT for work: Digital skills in the workplace

Intermediate report “The impact of ICT on job quality: evidence from 12 job profiles”

---

The impact of career websites: what's the evidence?

an article by Cathy Howieson and Sheila Semple (University of Edinburgh, UK) published in British Journal of Guidance & Counselling Volume 41 Issue 3 (June 2013)

Abstract

Careers provision for young people in the UK is being re-formulated on the basis of a central role for career websites but this policy is based on unproven assumptions about their value.

In this article we consider the use and impact of the two main career websites in Scotland on pupils’ career management skills.

We found that pupils at risk of not achieving positive post-school destinations were less likely to use the websites, as were minority ethnic pupils. Although similar in functions, the two websites differed in their effect: one had no impact while the other impacted on only one aspect of pupils’ career management skills.

Careers policy needs to be informed by more extensive research on career websites.

---

Digital divide across the European Union

an article by Frederico Cruz-Jesus, Tiago Oliveira and Fernando Bacao (ISEGI, Universidade Nova de Lisboa, Portugal) published in Information & Management Volume 49 Issue 6 (October 2012)

Abstract

Our research analyses the digital divide within the European Union 27 between the years of 2008 and 2010.

To accomplish this we use multivariate statistical methods, more specifically factor and cluster analysis, to address the European digital disparities. Our results lead to an identification of two latent dimensions and five groups of countries.

We conclude that a digital gap does, in fact, exist within the European Union. The process of European integration and the economic wealth emerge as explanatory factors for this divide. On the other hand, the educational attendance is not proven to be significant, as one would expect.

Figures and tables from this article [which are very informative to my visual brain (and attractive)]

---

Web users don't know how to report illegal content

via PC Advisor News on 27 October

Over three-quarters of web users have stumbled across disturbing content on the net but have no idea how to report it, according to the Internet Watch Foundation (IWF).

Read the full article

---

A new IT curriculum is essential, says e-Skills

via Computing.co.uk Latest updates by Janie Davies on 27 August

UK IT education must change for young people to choose technology courses and careers, says the sector skills council.
Uninspiring curricula and a negative perception of IT are conspiring to turn students away from the subject and threaten the UK's ability to compete in the global economy, e-Skills UK has warned.

Read the full thought-provoking article

Hazel's comment:
Are we surprised? You might be but I'm not as I've just read an item about teachers not being able to keep up with all the new communication technologies. And not using them in their teaching.

---

Google launches internet browser

Google is to release its own Internet browser in what amounts to its most direct attack yet on Microsoft's dominance of PC software.
Read more »

Hazel's comment:
Thus the FT this morning – and, presumably, all the IT press that I normally read but I got to this one first in the "reading pile".
Interesting.
One might wonder whether this will affect Firefox users to any great extent but I suspect that for commercial use Microsoft will hold its own. Too many remote desktop solutions are tied in to "Microsoft for everything" particularly in the small- and medium-sized market.

---