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on Information and Communication Technologies |
| By: | Benoit Dostie (HEC Montreal); Rajshri Jayaraman (ESMT European School of Management and Technology) |
| Abstract: | Using a large longitudinal, nationally representative workplace-level dataset, we explore the productivity gains associated with computer use and organizational redesign. The empirical strategy involves the estimation of a production function, augmented to account for technology use and organizational design, correcting for unobserved heterogeneity. We find large returns associated with computer use. We also find that computer use and organizational redesign may be complements or substitutes in production, and that the productivity gains associated with organizational redesign are industry-specific. |
| Keywords: | organizational capital, IT, computers, workplace productivity, matched employer-employee data |
| JEL: | D20 L20 M54 O33 |
| Date: | 2008–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:esm:wpaper:esmt-08-007&r=ict |
| By: | Borghans, Lex (Maastricht University); ter Weel, Bas (CPB Netherlands Bureau for Economic Policy Analysis) |
| Abstract: | We review the empirical literature about the implications of the computerization of the labor market to see whether it can explain observed computer adoption patterns and (long-term) changes in the wage structure. Evidence from empirical micro studies turns out to be inconsistent with macro studies that are based on CES production functions. We propose a micro foundation for the CES production function that allows for changes in the underlying structure. We adapt the macro model by incorporating computer skills, complementary skills and fixed costs for computer technology usage suggested by the micro literature. It turns out that fixed costs for computer technology usage explain different patterns of computer adoption and diffusion between several types of workers and countries; it also provides very plausible patterns of the timing of wage inequality and developments over time. |
| Keywords: | wage level of structure, computer technology, technology diffusion |
| JEL: | J31 O15 O33 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3792&r=ict |