The effect of ICT adoption on labour demand: A cross-region comparison
| Author | Goaied M. |
| Author | Sassi S. |
| Available date | 2020-04-25T01:02:21Z |
| Publication Date | 2019 |
| Publication Name | Papers in Regional Science |
| Resource | Scopus |
| ISSN | 10568190 |
| Abstract | This paper assesses the information and communications technologies (ICT)-labour relationship from a macroeconomic perspective to clarify some ambiguity regarding the overall employment effect of ICT adoption in the short and long term. For that, we use two panel data techniques, generalized method of moments (GMM) and the pooled mean group model (PMG), on a large sample of developing and developed countries, covering five regions, during the period from 1990-2015. Our findings provide evidence that the overall impact of ICT adoption is labour saving in the short term, and this adverse effect still carries on in the long run, inducing higher structural unemployment. The displacement of the labour market induced by ICT adoption is real, persistent, and universal. Policy-makers should facilitate the transition of labour from old to new jobs and reduce the period of adaptability. |
| Sponsor | This paper has been produced with the financial assistance of the European Union within the context of the EMNES project. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the European Union or the EMNES Network. |
| Language | en |
| Publisher | Blackwell Publishing Ltd |
| Subject | developing and developed countries GMM ICT adoption labour demand PMG |
| Type | Article |
| Pagination | 16-Mar |
| Issue Number | 1 |
| Volume Number | 98 |
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