nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2022‒08‒29
two papers chosen by
Marek Giebel
Universität Dortmund

  1. Information and Communication Technology, Hierarchy, and Job Design By Elisa Gerten; Michael Beckmann; Elisa Gerten; Matthias Kräkel
  2. Home computer ownership and educational outcomes of adolescents in Greece By Djinovic, Vladana; Giannakopoulos, Nicholas

  1. By: Elisa Gerten (Faculty of Management, Economics and Social Sciences, University of Cologne, Albertus-Magnus-Platz, D-50923 Cologne, Germany); Michael Beckmann (Faculty of Business and Economics, University of Basel, Peter Merian-Weg 6, CH-4002 Basel, Switzerland; Institute for Employment Research (IAB), Nuremberg, Germany; IZA Institute of Labor Economics, Bonn,Germany;); Elisa Gerten (Faculty of Management, Economics and Social Sciences, University of Cologne, Albertus-Magnus-Platz, D-50923 Cologne, Germany); Matthias Kräkel (Department of Economics, University of Bonn, Adenauerallee 24-42, D-53113 Bonn, Germany; IZA Institute of Labor Economics, Bonn, Germany)
    Abstract: In recent decades, information and communication technology (ICT) has been associated with far-reaching changes in the design of jobs. However, it still remains unclear whether these changes will lead to more centralization or more decentralization in firms. Previous literature on this debate has focused on a strict dichotomy between the two possible directions. In contrast, our theoretical and empirical analyses show that equipping employees with ICT leads to both more centralized and more decentralized job-design policies. This finding is particularly pronounced for executive employees, who are granted more work autonomy but also experience more control via stronger monitoring, while non-executive employees only experience more monitoring without receiving more work autonomy. Our theoretical setting is based on a modified principal-agent model. In our empirical approach we apply estimation models that account for both endogeneity and essential heterogeneity, thereby exploiting exogenous geographic variation in our instrumental variable.
    Keywords: information and communication technology; centralization; decentralization; monitoring; working from home; marginal treatment effects; essential heterogeneity; instrumental variable
    JEL: D2 D86 J3 M1 M5
    Date: 2022–08
  2. By: Djinovic, Vladana; Giannakopoulos, Nicholas
    Abstract: In this paper we investigate whether human capital accumulation, during adolescence, depends on home investments in Information and Communication Technologies (ICT) equipment. Using micro-level data, for children aged 17-18 years old, drawn from the Greek part of the European Union Statistics on Income and Living Conditions (EUSILC) for the period 2003-2019 we measure school dropout for individuals residing in households with and without access to home computer. We found that adolescents with access to ICT have better educational outcomes compared to their peers without access to such equipment (almost 5 percentage points lower probability of school dropout). These estimates are robust to different model specifications and data restrictions. Our results support the hypothesis that technology diffusion promotes educational outcomes and provides additional evidence regarding the formation of human capital during adolescence.
    Keywords: Education,Technology Diffusion,Human Capital
    JEL: I24 O33 J24
    Date: 2022

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