The Digital Transformation and Labor Demand

While digital transformation has a great potential to enhance productivity and incomes, it may also result in job destruction. The chapter contributes to the debate about these issues.

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Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation, Employment, and the Digital Transformation: A Conceptual Framework . . . . . . . . . Innovation and Employment Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Innovation and the Digital Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Role of the Digital Transformation for Employment Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Digital Technologies and Different Types of Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sectoral Heterogeneity, Inter-sector Linkages, and ICT Multipliers . . . . . . . . . . . . . . . . . . . . . . . . . Technological Heterogeneity and Employment Dynamics: Recent Empirical Evidence . . . Focusing on ICT Investments and Labor Demand in OECD Countries . . . . . . . . . . . . . . . . . . . . . . . . Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cross-References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Abstract

While digital transformation has a great potential to enhance productivity and incomes, it may also result in job destruction. The chapter contributes to the debate about these issues. It conceptualizes the mechanisms that drive employment responses to technological change, reviews recent studies on the relationship between ICTs and employment level, provides new evidence on the effects of ICT investment on labor demand in selected OECD countries, and concludes with some implication for further research and policies.

The opinions expressed here are those of the authors and do not necessarily reflect those of the OECD or its member countries. F. Calvino · V. Spiezia (*) Directorate for Science, Technology and Innovation, Organisation for Economic Co-operation and Development (OECD), Paris, France e-mail: [email protected] © Springer Nature Switzerland AG 2020 K. F. Zimmermann (ed.), Handbook of Labor, Human Resources and Population Economics, https://doi.org/10.1007/978-3-319-57365-6_19-3

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F. Calvino and V. Spiezia

Introduction Digital transformation is driving growth in productivity and income. At the same time, there is a risk that digital technologies may replace workers and result in higher unemployment. These concerns about job destruction are typical of periods of fast technological prog