|
on Information and Communication Technologies |
| By: | Filip, Marinela-Daniela; Setzer, Ralph; Peréz-González, Diego |
| Abstract: | This paper examines whether differences in the composition of investment help explain economic growth disparities in the EU and other advanced economies from 1996 to 2021. While overall investment levels in the EU and the US are broadly similar, the EU invests less in intangible and tangible ICT capital. This difference in composition is associated with part of the EU’s productivity gap with the US. Employing panel fixed effects and local projection methods, we find that intangible and tangible ICT investments -particularly in communications equipment, R&D, and other intellectual property products- are associated with higher GDP per capita growth than other forms of investment. To quantify these differences, we construct a novel investment efficiency ratio that relates the estimated economic growth contribution of each asset to its share in total investment. The results are robust across empirical methods, country samples, and time periods, and reveal substantial heterogeneity: the growth association of ICT-related investment is stronger in countries with higher income levels and greater human capital. Overall, the findings suggest that improving the allocation and efficiency of investment, rather than simply increasing its volume, is key to enhancing long-term growth. JEL Classification: E22, O47, O50, J24, C23 |
| Keywords: | intangible investment, investment efficiency, investment human capital, panel data, tangible ICT |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20263242 |
| By: | Gmyrek, Pawel; Viollaz, Mariana; Winkler, Hernan |
| Abstract: | This article examines how generative artificial intelligence (GenAI) could affect labor markets globally, with particular attention to the uneven distribution of risks and opportunities between advanced and developing economies. Cross-country differences in occupational structure suggest that developing economies face lower aggregate automation exposure than advanced economies but comparable potential for task augmentation. However, disparities in digital infrastructure create an asymmetry: workers in positions vulnerable to automation typically maintain sufficient internet connectivity to experience displacement effects even in low-income settings, while those who could benefit from GenAI augmentation face substantial digital infrastructure gaps that may prevent them from realizing productivity gains. This finding suggests that developing countries may experience the disruptive effects of GenAI faster than its productivity benefits. At the same time, conventional occupational exposure measures systematically overestimate the impact of GenAI in developing countries by assuming uniform task content across economies. Using data from skills surveys, the article demonstrates that workers in developing countries perform substantially fewer non-routine analytical tasks—the primary targets of GenAI—even within occupations classified as highly exposed. These findings highlight the importance of adapting GenAI exposure measures to ref lect developing countries' distance from the technology frontier. |
| Date: | 2026–03–16 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11328 |
| By: | de Wit, Pieter; Wickert, Christopher; Gümüsay, Ali |
| Abstract: | Despite persisting ethnonational conflict in Israel and Palestine, professionals in the information technology (IT) sector keep working together. They engage in professional cooperation by jointly developing software while embedded in societal narratives that cast the other as the enemy. We ask how individuals give meaning to their work when cooperating with their societal adversaries in such a context. Drawing on a qualitative case study that combines interviews, observations, and documents, we find that individuals use two main tactics to cope with the conflict context: depoliticizing and politicizing cooperation. We specify these individual-level tactics and show when they are used: depoliticizing in situations “at work” and politicizing in situations “about work.” We also show that these tactics are at times misplaced and hinder cooperation. Additionally, we find that physical and social interference can disrupt cooperation and thus set guardrails for it. Abstracting from our findings, we theorize a model that explains how individuals engage in what we term conflict-situated cooperation. We offer two main contributions to management research: We introduce the concept of conflict-situated cooperation to capture the distinct nature of professional cooperation in the context of ethnonational conflict, and we explain how individuals use and situate (de)politicizing coping tactics to give meaning to their professional cooperation. |
| Keywords: | qualitative research; case study; cooperation; ethnonational conflict; coping |
| JEL: | J50 |
| Date: | 2026–05–18 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:138024 |
| By: | Galanakis Ioannis (European Commission - JRC); Lopez Cobo Montserrat (European Commission - JRC); Vergote Wouter (European Commission - JRC) |
| Abstract: | This policy brief by the European Skills Intelligence Observatory (ESIO) highlights critical skills challenges facing the EU. Different sources of evidence point towards skills mismatches that are particularly acute in ICT, engineering, health and care, and skilled trades. These shortages diverge across countries, and tackling them requires different levels of education and training. Evidence shows that the supply side is not keeping up due to issues such as the decline in basic skills, teacher shortages, and a large untapped potential of working-age adults who remain outside the labour force or are unemployed or underemployed. In particular, STEM enrolment, which is instrumental for EU competitiveness, is not increasing in line with demand. This gap will widen unless the talent pipeline is broadened, especially for women. The brief also emphasises that AI adoption is reshaping demand for digital and transversal skills and tends to widen the skills gap, calling for effective lifelong learning policies in addition to adapted formal training programmes. The brief underscores the need for improved skills intelligence to address mismatches and future-proof Europe’s workforce. |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc147054 |
| By: | Whelan, Adele (Economic and Social Research Institute, Dublin); Brosnan, Luke (Economic and Social Research Institute, Dublin); McGuinness, Seamus (Economic and Social Research Institute, Dublin) |
| Abstract: | We analyse the gender gap in digital skills use at work across Europe. We find a substantial gap, with women significantly less likely to perform advanced digital tasks. A raw gender gap of around 16 percentage points is observed, of which only 30 per cent is attributable to observable factors. Oaxaca-Blinder decompositions using unconditional decile regressions reveal that the gap is most pronounced at the upper end of the digital intensity distribution, where women are substantially underrepresented. The explained component of the gender digital skills gap increases with digital task intensity, suggesting that access to highly digital jobs is shaped by gendered educational and occupational sorting. However, persistent unexplained gaps from intermediate levels indicate potential structural, cultural, or other organisational barriers at play. Furthermore, we find that younger women already face larger gaps in advanced digital skill use than older workers, suggesting that it is not a legacy issue. |
| Keywords: | digitalisation, digital skills gap, gender inequality, labour markets, technological change, task-based analysis, decomposition analysis, inclusive growth |
| JEL: | J16 J24 O33 I25 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18675 |
| By: | Young-ook JANG (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | Korea now faces rapid demographic decline due to ultra‑low fertility and accelerated aging. According to Statistics Korea, the population peaked at 51.75 million in 2024 and is projected to fall below 40 million by 2065. This demographic contraction is expected to intensify labor market imbalances. <p> Several studies project widening labor shortages over the next 5–10 years. The Korea Employment Information Service (2025) suggests that the labor force will decline from 2030 and approximately 820, 000 more workers will be needed to fill the labor demand by 2033. The Korea Labor Institute (2024, 2025) also estimated that a shortage of 2.98 million workers (2024–2028) will expand to 6.18 million (2025–2033). The degree of labor shortages varies by sectors and regions. ICT services, healthcare and welfare, logistics, hospitality, and agriculture are the sectors that are exposed to the highest risk of labor shortages. Some provinces are already experiencing difficulties in hiring qualified workers due to declining population. <p> Apart from the demographic change, labor market imbalance is intensified by structural changes due to geopolitical and technological factors. Geopolitical factors—including strategic competition between the United States and China, the COVID-19 pandemic, and the Russia–Ukraine war—have heightened global supply chain instability, prompting major economies to strengthen domestic and regional competitiveness in key advanced industries such as artificial intelligence, biotechnology, semiconductors, and secondary batteries. This, combined with the decline in the economically active population across advanced economies, has exacerbated labor shortages in strategic high-tech sectors. In response, major countries are actively implementing policies to attract highly skilled foreign talent, which puts pressure on the supply of talent in Korea. <p> Labor shortages increase production costs, reduce corporate profitability, heighten inflationary pressures, and undermine potential economic growth. Attracting more foreign labor in both skilled and unskilled occupations is increasingly being considered as a potential response to labor market imbalances, particularly labor shortages. However, several challenges remain to be addressed. These include intensifying competition among advanced economies to attract talent, conflict between free-market principles and existing (often rigid) visa regimes, and the wide-ranging economic, social, cultural, and political consequences of immigration.<p> Resolving labor market imbalances is essential to sustaining long-term growth potential. Although foreign workers cannot fully offset aggregate labor shortages, they may be able to alleviate supply constraints in specific industries and skill categories. Promotion of labor mobility can be a plausible option as long as it is accompanied by policy measures to minimize associated side effects. <p> Jang et al. (2025) conducted two empirical analyses to estimate the effect of immigration on the labor market imbalances. First, the study examines the impact of the free labor movement in the EU on labor market imbalances. The EU is an early adopter of immigration and a supranational entity operating one of the most advanced and proactive immigration regimes. In particular, examining the effects of the EU’s flexible and inclusive immigration policies can provide meaningful policy implications for Korea. Second, the report analyzes Korea’s Employment Permit System (EPS) to assess the extent to which domestic policy measures have contributed to alleviating labor shortages. Noting the expansion of the EPS—a low-skilled labor inflow mechanism—during the post–COVID-19 recovery phase, the study quantitatively evaluates how effectively this policy has mitigated labor shortages across regions. <p> This brief will summarize the key methods and results of those analyses and derive policy implications from them. |
| Keywords: | Labor Market; Immigration Policies |
| Date: | 2026–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:022505 |
| By: | Ouakil, Hicham; Liouaeddine, Mariem; Hosni, Mohamed; Saadi, Ayoub |
| Abstract: | The allocation and effectiveness of public subsidies for R&D and innovation are crucial issues for firms and policymakers. This study has two main objectives: first, to identify the determinants of access to public funding for R&D and innovation within firms; second, to quantitatively assess the causal impact of this support on firms’ R&D and innovation activities. We used data from the 2019 World Bank survey of 1, 096 Moroccan firms (www. enterprise surveys and applied two econometric approaches. For the first objective, we resorted to logistic regression based on a probit model. The results show that competitive firms, those investing in ICT, and those that employ graduates are more likely to receive public financial support. For the second objective, we used Propensity Score Matching (PSM) to control for selection bias and endogeneity. The results show that government financial support significantly favors the innovation inputs and outputs of Moroccan firms. |
| Keywords: | Public Support, Firm R&D and Innovation, Impact Assessment, Probit Model, Propensity Score Matching (PSM). |
| JEL: | D2 D22 O3 |
| Date: | 2026–01–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128707 |