nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2011‒11‒21
four papers chosen by
Walter Frisch
University Vienna

  1. ICT Use and Labor: Firm-Level Evidence from Turkey By Hilal Atasoy
  2. IICT Skills and Employment Opportunities By Hilal Atasoy
  3. E-Finance Development in Korea By Choong Young Ahn; Doo Yong Yang
  4. ICT in Latin America: A Microdata Analysis By Vergara, Sebastián; Rovira, Sebastián; Balboni, Mariana

  1. By: Hilal Atasoy (Department of Economics, University of Illinois at Urbana-Champaign)
    Abstract: This study analyzes the adoption and use of information communication technologies (ICTs) by firms and their effects on employment and wages. I use a confidential data set from Turkey that includes detailed surveys focused on how ICTs and the Internet are used by firms. By using the rich survey data, I create an ICT index summarizing ICT adoption and use, along with the skills of the firms, where each category takes into account many applications. The firms with different levels of ICTs differ in many characteristics. I use the generalized propensity score matching method in order to compare firms that are similar in many dimensions such as industry, location, investments, profits, trade balance, and output. I find positive effects of ICTs on employment and wages that are diminishing after a certain level of ICTs. These significant effects are due to an increase in ICT-generated jobs and not due to an increase in non-ICT jobs in the short-run. The effects on non-ICT employment become significant a couple years after investments in ICTs. This implies a change in the skill composition of the firms with higher intensity of ICT use, especially in the short run.
    Keywords: Information communication technologies, skilled-biased technical change, employment
    JEL: J21 O33
    Date: 2011–09
  2. By: Hilal Atasoy (Department of Economics, University of Illinois at Urbana-Champaign)
    Abstract: This study analyzes information communication technology (ICT) use and skills of workers, and their effects on employment opportunities. I employ a confidential data set provided by Statistical Institute of Turkey that includes detailed surveys on ICT use by households and individuals. The data contains information on ICT skills: starting from the most basic ones such as using an excel spreadsheet and uploading or transferring files, to more advanced skills such as knowing a programming language and solving computer problems. Workers that have ICT skills are more likely to be employed when individual and household level observables are held constant. However, this positive relationship is due to the workers who gained these skills at work. This data suggests there is no causal direction from ICT skills to employment and the positive relationship is due to endogeneity.
    Keywords: Information communication technologies, ICT skills, employment
    JEL: J24 O30
    Date: 2011–09
  3. By: Choong Young Ahn (KEIP - Korea Institute of International Economic Policy); Doo Yong Yang
    Abstract: E-finance in Korea has evolved since the late 1980s, when developments in information and telecommunication technology started to be applied to the financial industry. Since the 1990s, e-finance has led a paradigm shift in the financial industry as financial transactions in computer-based tools began increasing. There are several factors that contributed to e-finance development. Korea possess the basic requisite conditions to foster thriving e-finance, including an advanced IT infrastructure, several government e-commerce initiatives and financial restructuring resulting from the financial crisis. In fact, all of these factors have eliminated possible impediments to the development of e-finance in developing countries. This paper shows that the decision for the introduction of internet banking depends on the profit level for the bank rather than the asset size and/or operation costs. Intuitively, large banks are early takers in providing Internet banking de to a huge amount of initial investment costs to establish an Internet banking network. At the same time, cost inefficient banks are inclined to consider the introduction of Internet banking earlier to reduce inefficiency caused by replacing cost-inefficient infrastructure. However, Korea shows an interesting case such that the asset size and operation costs were irrelevant to the establishment of Internet banking networks. On the other hand, profitability was relevant to the introduction of Internet banking. This may imply that relatively profitable banks at the onset of the crisis were able to jump into e-finance earlier than non-profitable banks. Furthermore, this paper shows that the adoption of internet banking has a positive effect of bank profit.
    Keywords: e-fianance development in Korea, Internet Banking, Financial Industry
    JEL: G21 L86 C33
    Date: 2011–04
  4. By: Vergara, Sebastián; Rovira, Sebastián; Balboni, Mariana
    Abstract: This book is the final report of the ECLAC-IDRC project Observatory for the Information Society in Latin American and the Caribbean (OSILAC), Third Phase”. OSILAC III is a cooperating project between the International Development Research Centre (IDRC) and the Division of Production, Productivity and Management, ECLAC-UN, which aims at understanding the dynamics of the ICT evolution and revolution and producing evidence on its potential to support socio-economic development, particularly in developing countries. As such, microdata analysis drawn from National Household Surveys and National Innovation Surveys in Latin America were used in the framework of the project in the attempt to reach those objectives Both statistical information sources provide attractive potentialities in order to investigate not only determinants of innovation activities and technology diffusion, but also its economic impacts.
    Keywords: ICT; Innovation; Productivity
    JEL: L86
    Date: 2011–05–01

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