Source:
Quarterly Journal of Economics, Volume 117, Issue 1, p.339-376 (2002)
Abstract:
We investigate the hypothesis that the combination of three related innovations—
1) information technology (IT), 2) complementary workplace reorganization,
and 3) new products and services—constitute a significant skill-biased
technical change affecting labor demand in the United States. Using detailed
firm-level data, we find evidence of complementarities among all three of these
innovations in factor demand and productivity regressions. In addition, firms that
adopt these innovations tend to use more skilled labor. The effects of IT on labor
demand are greater when IT is combined with the particular organizational
investments we identify, highlighting the importance of IT-enabled organizational
change.
Notes:
Early draft available in fulltext below.