nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2024‒11‒11
three papers chosen by
Marek Giebel, Universität Dortmund


  1. The new wave? The role of human capital and STEM skills in technology adoption in the UK By Mirko Draca; Max Nathan; Viet Nguyen-Tien; Juliana Oliveira-Cunha; Anna Rosso; Anna Valero
  2. The impact of digital technologies on well-being: Main insights from the literature By Jihye Lee; Žiga Žarnic
  3. Digital Distractions with Peer Influence: The Impact of Mobile App Usage on Academic and Labor Market Outcomes By Panle Jia Barwick; Siyu Chen; Chao Fu; Teng Li

  1. By: Mirko Draca; Max Nathan; Viet Nguyen-Tien; Juliana Oliveira-Cunha; Anna Rosso; Anna Valero
    Abstract: Which types of human capital influence the adoption of advanced technologies? We study the skill biased adoption of information and communication technologies (ICT) across two waves in the UK. Specifically, we compare the 'new wave' of cloud and machine learning / AI technologies during the 2010s - pre-LLM - with the previous wave of personal computer adoption in the 1990s and early 2000s. At the area-level we see the emergence of a distinct STEM-biased adoption effect for the second wave of cloud and machine learning / AI technologies (ML/AI), alongside a general skill-biased effect. A one-standard deviation increase in the baseline share of STEM workers in areas is associated with around 0.3 of a standard deviation higher adoption of cloud and ML/AI. We find similar effects at the firm level where we are able to test for the influence of a wide range of skills. In turn, this STEM-biased adoption pattern has encouraged the concentration of these technologies, leading to more acute differences between high-tech and low-tech areas and firms. In contrast with classical technology diffusion, recent cloud and ML/AI adoption in the UK seems more likely to widen inequalities than reduce them.
    Keywords: Technology Diffusion, ICT, Human Capital, STEM, Technological change, AI
    Date: 2024–10–10
    URL: https://d.repec.org/n?u=RePEc:cep:cepdps:dp2040
  2. By: Jihye Lee; Žiga Žarnic
    Abstract: Digital technologies are reshaping our lives, with significant impacts on personal and societal well-being. As these technologies are increasingly integrated into everyday life, it is crucial to raise awareness on their positive and negative impacts which are reviewed in this paper. While innovations like AI in healthcare and assistive devices empower individuals and improve access, they also introduce risks such as mental health challenges, misinformation, and privacy breaches. Raising awareness around digital risks helps individuals make smarter, safer decisions. At the same time, empowerment is about more than just awareness; it involves giving users control over their digital experiences, equipping them with the skills to harness technology for education, employment, and personal growth. Ultimately, responsible digital use is essential for safeguarding data privacy, supporting democratic values and respecting ethical standards. While digital technologies have the power to level the playing field, they can deepen existing inequalities if access and skills are unevenly distributed. Bridging digital divides through tailored inclusive solutions is equally important. Understanding the relationship between technology use and well-being is therefore key, but further research is needed to fully grasp these dynamics.
    Keywords: civic engagement, digital divide, digitalisation, health, personal safety, social connections, subjective well-being, well-being, work-life balance
    JEL: I1 I3
    Date: 2024–11–05
    URL: https://d.repec.org/n?u=RePEc:oec:wiseaa:29-en
  3. By: Panle Jia Barwick; Siyu Chen; Chao Fu; Teng Li
    Abstract: Concerns over the excessive use of mobile phones, especially among youths and young adults, are growing. Leveraging administrative student data from a Chinese university merged with mobile phone records, random roommate assignments, and a policy shock that affects peers’ peers, we present, to our knowledge, the first estimates of both behavioral spillover and contextual peer effects, and the first estimates of medium-term impacts of mobile app usage on academic achievement, physical health, and labor market outcomes. App usage is contagious: a one s.d. increase in roommates’ in-college app usage raises own app usage by 4.4% on average, with substantial heterogeneity across students. App usage is detrimental to both academic performance and labor market outcomes. A one s.d. increase in own app usage reduces GPAs by 36.2% of a within-cohort-major s.d. and lowers wages by 2.3%. Roommates’ app usage exerts both direct effects (e.g., noise and disruptions) and indirect effects (via behavioral spillovers) on GPA and wage, resulting in a total negative impact of over half the size of the own usage effect. Extending China’s minors’ game restriction policy of 3 hours per week to college students would boost their initial wages by 0.7%. Using high-frequency GPS data, we identify one underlying mechanism: high app usage crowds out time in study halls and increases absences from and late arrivals at lectures.
    JEL: D12 D90 E24 I23 L82 L86 Z13
    Date: 2024–10
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33054

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