Arbeitspapier

Breaking through the digital ceiling: ICT skills and labour market opportunities

This paper analyses the impact of ICT-skills on individuals' labour market mobility patterns, in particular job-to-job, employment- to-unemployment and unemployment-to-employment transitions. Based on the OECD's Programme for the International Assessment of Adult Competencies (PIAAC) and longitudinal EU-SILC data, individuals' labour market outcomes are examined over the period 2011-2017 in nine EU countries and the UK. Our results indicate that individuals with strong ICT skills have better opportunities and are therefore not only more likely to change jobs more frequently but are also less likely to face unemployment. Furthermore, ICT skills support unemployment exit towards medium and high digital occupations. A certain minimum level of ICT skills also supports unemployment exit towards low digital occupations but seems to make employment in such occupations less likely once this threshold is crossed. Overall, ICT skills have less predictive power for transition towards medium digital occupations. Thus, while ICT skills appear to improve labour market opportunities significantly, it seems that there are still jobs that require relatively few ICT skills.

Language
Englisch

Bibliographic citation
Series: wiiw Working Paper ; No. 193

Classification
Wirtschaft
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Labor Demand
Subject
digital skills
labour market transitions

Event
Geistige Schöpfung
(who)
Pichler, David
Stehrer, Robert
Event
Veröffentlichung
(who)
The Vienna Institute for International Economic Studies (wiiw)
(where)
Vienna
(when)
2021

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Pichler, David
  • Stehrer, Robert
  • The Vienna Institute for International Economic Studies (wiiw)

Time of origin

  • 2021

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