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on Information and Communication Technologies |
| By: | Nikolas Schöll; Thomas Kurer |
| Abstract: | This paper challenges the common perception that automation and digitalization generally reduce employment and primarily result in political discontent. Drawing on fine-grained labor market data from West Germany and shift-share instruments combined with two-way fixed-effect panel models, we study how technological change affects regional electorates. We show that the expected decline in manufacturing and routine jobs in regions with higher robot adoption or higher investment in information and communication technology (ICT) was in fact more than compensated by parallel employment growth in the service sector and cognitive non-routine occupations. This change in the regional composition of the electorate has important political implications as workers trained for these new sectors typically hold progressive political values. Consequentially, local advances in technology are associated with higher vote shares for progressive parties. This finding adds important nuance to the popular narrative that technological change fuels radical right voting. |
| Keywords: | technological change, automation, robots, political preferences, Voters, occupational determinants of plitical preferences |
| JEL: | P16 D72 O33 J31 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1269&r= |
| By: | Virantau, Gilbert Nathaniel |
| Abstract: | The Indonesian economy experienced deflation of 0,1% in July 2020. One of the reason is because the Covid-19. The recovery of MSMEs cannot be separated from the information technology, considering that digitalization is the key so that enterpreneurs can survive and develop amid the Covid-19. The policy of the government’s to provide business credit to ultra-micro and small businesses as well as social assistance for the poor and victims of termination of employment is believed to be capable to save Indonesia’s economy from recession. |
| Date: | 2021–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:w3jd6&r= |
| By: | Antonin Bergeaud (Banque de France - Banque de France - Banque de France); Clément Malgouyres (IPP - Institut des politiques publiques, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Clément Mazet-Sonilhac (Banque de France - Banque de France - Banque de France, Institut d'Études Politiques [IEP] - Paris); Sara Signorelli (UvA - University of Amsterdam [Amsterdam]) |
| Abstract: | Domestic outsourcing has grown substantially in developed countries over the past two decades. This paper addresses the question of the technological drivers of this phenomenon by studying the impact of the staggered diffusion of broadband internet in France during the 2000s. Our results confirm that broadband technology increases firm productivity and the relative demand for high-skill workers. Further, we show that broadband internet led firms to outsource some non-core occupations to service contractors, both in the low and high-skill segments. In both cases, we find that employment related to these occupations became increasingly concentrated in firms specializing in these activities, and was less likely to be performed in-house within firms specialized in other activities. As a result, after the arrival of broadband internet, establishments become increasingly homogeneous in their occupational composition. Finally, we provide suggestive evidence that high-skill workers experience salary gains from being outsourced, while low-skill workers lose out. |
| Keywords: | Broadband,Firm organization,Labor market,Outsourcing |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-03265792&r= |
| By: | Amat Adarov (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Global value chains (GVCs) are among the critical factors shaping the world economy nowadays. Within cross-border production networks an increasingly important role has been played by the information and communication technology (ICT) sectors. Based on the multi-country input-output database recently developed by the Vienna Institute for International Economic Studies, covering the period 2005-2018, this policy brief examines the structure and the dynamics of global value chains associated with the ICT sectors. To this end we use complex network analysis techniques to characterise the overall topology of the international ICT cluster in the GVC network, identify the key countries and sectors therein from the perspective of their connectivity. The analysis shows that the ICT GVC network is dominated by the mutual value-added trade linkages between China, South Korea and Taiwan in the Computers and electronics manufacturing sector. These sectors are heavily interlinked via backward and forward GVC linkages with a large number of ICT and non-ICT sectors, many of which are located in the USA, China and Germany. In the recent decade, there has been a major shift in terms of importance to the GVC network from ICT manufacturing towards ICT services, especially prominent for the ICT services sector in Ireland, which has become among the most interconnected sectors in the global ICT cluster. |
| Keywords: | global value chains; ICT sector; network analysis; digitalisation |
| JEL: | F10 F14 F15 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:wii:pnotes:pn:50&r= |
| By: | van den Berg, Gerard (University of Groningen); Gürtzgen, Nicole (IAB,University of Regensburg, ZEW); Lochner, Benjamin (UniversityofErlangen-N ̈urnberg,IAB); Pohlan, Laura (AB,ZEW) |
| Abstract: | This paper studies the effects of the high-speed internet expansion on the match quality of new hires. We combine data on internet availability at the local level with German individual register and vacancy data.Results show that internet availability has no major impact on the stability of new matches and their wages. We confirm these findings using vacancy data, by explicitly comparing match outcomes of online and non-online recruits. Further results show that online recruiting not only raises the number of applicants and the share of unsuitable candidates per vacancy, but also induces employers to post more vacancies. |
| Keywords: | Matching; internet; informationalfriction; recruitingchannel; va-cancy; wage; jobduration |
| JEL: | C26 H40 J64 L96 |
| Date: | 2021–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2021_008&r= |
| By: | Drilo, Boris; Stojcic, Nebojsa; Vizek, Maruska |
| Abstract: | We explore how improvements in digital infrastructure contribute to digital transformation of the Croatian economy. More specifically, we investigate under what conditions improvements in broadband speed are conductive for firm entry in digitally intensive sectors at the local level (cities and municipalities; LGUs) during the period 2014–2017. The results of the benchmark random effects panel data model suggest a 10 percent increase in broadband speed increases the number of new digitally intensive firms by 0.68. Two-way interactions between explanatory variables suggest improvements in broadband infrastructure yield the greatest number of new firm entries in densely populated LGUs, and in LGUs with a higher quality of human capital and greater public investment in physical infrastructure. Using the spatial Durbin panel method, we find improvements in broadband infrastructure exhibit positive firm entry effects both within and between cities and municipalities. |
| Keywords: | firm entry; digitally intensive sectors; broadband speed; digital transformation; Croatia; spatial spillovers |
| JEL: | D22 L26 M13 O33 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108717&r= |
| By: | Xin Deng; Cher Li; Simona Mateut |
| Abstract: | This paper empirically investigates the financial market’s reaction to firms’ participation in developing standards coordinated by Standard Setting Organizations (SSOs). We present the first causal evidence on the influence of SSO membership over a firm’s implied cost of equity capital - the discount rate applied by investors to its expected future cash flows. Our analysis utilizes a panel of 3,350 U.S. public firms and their memberships in 183 SSOs operating in Information and Communications Technologies (ICT) fields between 1996 and 2014. We find that participation in SSOs results in a significantly lower cost of equity for member firms, using exogenous variations from SSO closures and instrumental variables. This reduction is more pronounced for a firm’s first SSO membership, in ICT firms, among members of most influential SSOs and in certain technology domains. We empirically document the contingent role of three potential mechanisms identified by our conceptual framework - technological uncertainty, market uncertainty and information environment – through which SSO membership can affect financial outcomes. |
| Keywords: | cost of equity, uncertainty, technology standards, Standard Setting Organizations (SSOs) |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:2020-29&r= |
| By: | Ohlsbom, Roope |
| Abstract: | Abstract Data collected with the Finnish Management and Organizational Practices Survey (FMOP) is used to study the association between management practices and firm productivity, and to examine whether human capital intensity acts as a moderator variable for this relationship. A comparison of how well different models predict productivity from management practices and human capital reveals a linear two-way interaction between the education of managers and management practices. We find evidence that the marginal benefit of adopting more structured management practices is different for establishments with different levels of managerial human capital. Testing and accounting for this interaction is important for reliable estimation of the management-productivity relationship. Accounting for the interaction, a 10 percent increase in the FMOP management score is found to be associated with an average of 7.1 percent higher labour productivity. Management practices can account for more than 24 percent of the observed productivity dispersion. This is close to as much as is accounted for by information and communication technologies and more than by research and development and human capital. |
| Keywords: | Management practices, Management survey, FMOP, Productivity, Human capital, Education |
| JEL: | D22 J24 L25 L60 M11 M50 |
| Date: | 2021–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:88&r= |
| By: | Josh Lerner; Amit Seru; Nick Short; Yuan Sun |
| Abstract: | We develop a unique dataset of 24 thousand U.S. finance patents granted over last two decades to explore the evolution and production of financial innovation. We use machine learning to identify the financial patents and extensively audit the results to ensure their reasonableness. We find that patented financial innovation is substantial and economically important, with the number of annual grants expanding from a few dozen in the 1990s to over 2000 in the 2010s. The subject matter of financial patents has changed, consistent with the industry’s shift in revenue and value-added towards household investors and borrowers. The surge in financial patenting was driven by information technology firms and others outside of financial sector, which collectively accounted for 69% of the awards. The location of innovation has shifted, with banks moving this activity from regions with tight financial regulation to more permissive ones. High-tech regions have attracted financial innovation by payments, IT, and other non-financial firms. Turning to the source of these ideas, while academic knowledge remained associated with more valuable patents, citations in finance patents to academic papers, especially in those by banks, fell sharply. |
| JEL: | G20 O31 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28980&r= |
| By: | Reisch, L.; Spash, Clive L.; Bietz, Sabine |
| Abstract: | How to change economic behaviour and achieve sustainable consumption? This paper reports onusing television and internet communication as a means of engaging the least interested sectionsof society with respect to environmental problems and sustainability issues. The theory behinddeveloping such communication is described and the importance of social psychological factorsbrought to the fore. Initial results indicating the success of the approach employed in actualbroadcasts on television in Germany are then reported. Some concerns over use of the media andpublic engagement are also discussed. |
| Keywords: | Consumption, behaviour, choice, norms, consumer theory, environment |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus009:8199&r= |
| By: | Arthur Charpentier; Lariosse Kouakou; Matthias L\"owe; Philipp Ratz; Franck Vermet |
| Abstract: | The peer-to-peer (P2P) economy has been growing with the advent of the Internet, with well known brands such as Uber or Airbnb being examples thereof. In the insurance sector the approach is still in its infancy, but some companies have started to explore P2P-based collaborative insurance products (eg. Lemonade in the U.S. or Inspeer in France). The actuarial literature only recently started to consider those risk sharing mechanisms, as in Denuit and Robert (2021) or Feng et al. (2021). In this paper, describe and analyse such a P2P product, with some reciprocal risk sharing contracts. Here, we consider the case where policyholders still have an insurance contract, but the first self-insurance layer, below the deductible, can be shared with friends. We study the impact of the shape of the network (through the distribution of degrees) on the risk reduction. We consider also some optimal setting of the reciprocal commitments, and discuss the introduction of contracts with friends of friends to mitigate some possible drawbacks of having people without enough connections to exchange risks. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.02764&r= |