Information and communication technologies and skill upgrading: The role of internal vs. external labour markets

Arbeitspapier

Following the adoption of information and communication technologies (ICT), firms are likely to face increasing skill requirements. They may react either by training or hiring the new skills, or by a combination of both. We first show that ICT are indeed skill biased and we then assess the relative importance of external and internal labour market strategies. We show that skill upgrading following ICT adoption takes place mostly through internal labour markets adjustments. The introduction of ICT is associated with an upward shift in firms' occupational structure, of which one third is due to hiring and firing workers from and to the external labour market, whereas two-thirds are due to promotions. Moreover, we find no compelling evidence of external labour market strategies based on excess turnover. In contrast, French firms heavily rely on training in order to upgrade the skill level of their workforce, even if this varies across industries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 5494

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Labor Contracts
• Subject: technical change ; labour turnover ; skill bias ; training ; internal labour markets ; Computergestütztes Verfahren ; Informationstechnik ; Qualifikationsbedarf ; Interner Arbeitsmarkt ; Betriebliches Bildungsmanagement ; Arbeitsnachfrage ; Frankreich

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Behaghel, Luc ; Caroli, Eve ; Walkowiak, Emmanuelle
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/51910
• URN: urn:nbn:de:101:1-201104113677
• Last update: 10.03.2025, 11:44 AM CET