Arbeitspapier

How do workers adjust when firms adopt new technologies?

We investigate how workers adjust to firms' investments into new digital technologies, including artificial intelligence, augmented reality, or 3D printing. For this, we collected novel data that links survey information on firms' technology adoption to administrative social security data. We then compare individual outcomes between workers employed at technology adopters relative to non-adopters. Depending on the type of technology, we find evidence for improved employment stability, higher wage growth, and increased cumulative earnings in response to digital technology adoption. These beneficial adjustments seem to be driven by technologies used by service providers rather than manufacturers. However, the adjustments do not occur equally across worker groups: IT-related expert jobs with non-routine analytic tasks benefit most from technological upgrading, coinciding with highly complex job requirements, but not necessarily with more academic skills.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 21-073

Classification
Wirtschaft
Labor Demand
Wage Level and Structure; Wage Differentials
Job, Occupational, and Intergenerational Mobility; Promotion
Technological Change: Choices and Consequences; Diffusion Processes
Subject
technological change
artificial intelligence
employment stability
wages

Event
Geistige Schöpfung
(who)
Genz, Sabrina
Gregory, Terry
Janser, Markus
Lehmer, Florian
Matthes, Britta
Event
Veröffentlichung
(who)
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
(where)
Mannheim
(when)
2021

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Genz, Sabrina
  • Gregory, Terry
  • Janser, Markus
  • Lehmer, Florian
  • Matthes, Britta
  • ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung

Time of origin

  • 2021

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