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The introduction and diffusion of personal computers are widely viewed as a technological revolution. Using U.S. metropolitan area–level panel data, this paper asks whether links between PC adoption, educational attainment, and the return to skill conform to a model of technological revolutions in which the speed and extent of adoption are endogeno...
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... 1) Results of research by Lin (2011) and Beaudry et al. (2010) indicate that in cities with a high proportion of information technology experts among university graduates, jobs are created faster in new sectors of the economy, among which the IT stands out. Jacobs (1969) identified a leading factor in the city's economic development, the diversity of activities. ...
... According to Berger and Frey (2017), the dominance of extractive or manufacturing industries in the regional economy negatively affects the formation of new sectors. Beaudry et al. (2010) and Chen (2012) state that the United States' employment in the IT sector has a direct positive correlation with a significant concentration of people with higher education. Chen (2012) links the distribution of employment in China's IT sector to favourable living conditions. ...
Changes in the labour market are an inevitable result of technological progress. In these cir-cumstances, the effectiveness of public policy will depend on the correct projection of the future bal-ance in the labour market and on the drivers that can affect the technological development, elimination or preservation of jobs. Based on correlation and regression analysis, the study examines the influence of various factors on the transformation of regional labour markets in the context of digitalisation. The con-ducted calculations revealed that the human capital and entrepreneurial activity in the region influence the labour market the most. The calculated coefficient of elasticity shows that when the share of students in the population increases by 1 %, the value of the variable of the share of IT employees in the total num-ber of employees increases by 0.15 %. Increase in the ratio of small enterprises to the labour force by 1 unit shall increase the share of IT employees in the total number of employees by 0.002 %. However, at present, information and communication infrastructure is not a key factor in the development of labour market and new sectors, expanding opportunities for digital entrepreneurship, as well as online and of-fline training. Also, region’s innovative potential (level of business innovation in the regions by techno-logical innovations) is not a significant indicator of the intensity of development of new economic sec-tors and the formation of a regional base of accumulated knowledge and competencies. It was concluded that for the developing economy of Kazakhstan, the improvement of information and communication in-frastructure based on digital platforms is more rational for the labour market’s further development.
... He takes the United States as an example and finds that when the relative supply of skilled workers increases exogenously, the market has altered the direction of technological change due to greater technological complementarity, so the skill premium decreases in the short term but then increases, possibly even exceeding its initial value. The neoclassical model constructed by ref. [14] also supports this conclusion to a certain extent. After major technological innovations, the increase in the supply of skills will only accelerate the transition to new technologies and will not cause the return of skill premiums. ...
The effect of human capital on corporate innovation varies with the distribution of human capital intensity among industries. To analyze this heterogenous effect, we utilized the variation of college enrollment expansion across different regions in China as an exogenous human capital shock. Using a sample of Chinese industrial enterprises from 1998 to 2008 and the difference-in-difference strategy, we found that industries with intensive human capital significantly increase the number of patent applications after the expansion policy. The effect is pronounced in invention patents and significantly positive in exporting and capital-intensive corporates. As for the channels, corporates in these industries are apt to adopt new technologies and increase R&D expenditures. Moreover, the agglomeration of new graduates accelerates knowledge spillover, thus promoting innovation in knowledge-intensive industries. In sum, this paper verifies the importance of policy intervention on skilled labor supply towards corporate innovation and supports the talent introduction plan of local government in China.
... When new technologies become available, they are not applied uniformly across space. Given that computers and information and communication technologies (ICTs) complement both cognitive and social skills (Deming, 2017), those cities get at the forefront of technological adaptation where the supply of such skills is relatively higher (Beaudry et al., 2010;Berger & Frey, 2016). Accordingly, new skill-intensive tasks emerged in response to the adaptation of new technologies shift towards large urban areas further increasing the demand for these skills (Lin, 2011). ...
Several studies document that skills are strong predictors of earnings; however, less is known about the extent to which labour market size influences the return to skills. Using data from a unique representative survey recording the skill requirements of Hungarian firms, we show that social skills have higher returns in large urban labour markets. Surprisingly, this pattern cannot be observed for cognitive skills, while the return to manual skills slightly decreases with labour market size. Our estimates are robust to different agglomeration measures, additional controls and estimation methods; however, returns to skills seem to vary considerably across worker groups.
... However, it markedly flattens in the subsequent decade. This could be explained by the phasing out of the first wave of computerization and the fact that the new digitalization wave did not yet start (compare also Beaudry, Doms, and Lewis (2010) for technology waves). ...
This paper analyses the effects of wage inequality on labour market development. Relevant theories are ambiguous, just as public debates. We measure the effects of inequality, skill-biased and skill-neutral technical change on hours, productivity and wages in a novel structural vector error correction framework identified by economically motivated long-run restrictions. The results show that structural inequality shocks have a negative impact on hours, productivity and wages. These effects are particularly pronounced at high inequality levels and for inequality below the median wage. Skill-biased technology shocks reduce – unlike skill-neutral ones – hours but increase inequality, productivity and wages.
... It can explain the Panorama Económico, Vol. 30 No. 3 change in the estimated relative demand for college work or the change in tasks within nominally identical occupations. Beaudry, Doms, & Lewis (2010) moreover, show that the introduction and dissemination of personal computers are generally considered a technological revolution that creates a link between the adoption of PC, educational attainment, and return to skills, and where the cities are adjusting so unlike the advent of more skill-intensive means of production, and that returns to skills will increase more where skills are abundant, and performance is low. From the labor market, the technology takes a form of factor augmentation that, by complementing high-or low-skilled workers, can generate skill-biased demand shifts, such as significant drops in the real wages of low-skilled workers, particularly men lowgrade (Acemoglu & Autor, 2011). ...
This document evaluates the impact of new technologies use on wages in Colombia in 2018. For this analysis, a Propensity Score Matching model is used to evaluate the impact of the use of learning technologies on the wages and years of education of Colombians, based on the 2018 quality of life survey. The results show that the use of the computer, laptop, tablet, internet, transferred files, Excel and radio for learning have a positive impact on the wages of Colombians. This research allows a better understanding of the technological effects on wages and provides information for the design of public policies in the development of technological skills.
... Beaudry, Doms, & Lewis [53] moreover, show that the introduction and dissemination of personal computers is generally considered a technological revolution that create a link between the adoption of PC, educational attainment, and return to skills, and where the cities are adjusting so unlike the advent of more skill-intensive means of production, and that returns to skills will increase more where skills are abundant, and performance is low. From the labor market, the technology takes a form of factor augmentation that, by complementing high-or low-skilled workers, can generate skill-biased demand shifts, such as significant drops in the real wages of lowskilled workers, particularly men low-grade [54]. ...
This document evaluates the impact of computer use on wages in Colombia in 2018. For this analysis, a Propensity Score Matching model is used to evaluate the impact of the use of learning technologies on the wages and years of education of Colombians, based on the 2018 quality of life survey. The results show that the use of the computer, laptop, tablet, internet, transferred files, Excel and radio for learning have a positive impact on the wages of Colombians. This research allows a better understanding of the technological effects on wages and provides information for the design of public policies in the development of technological skills.
... 13 On the sub-sample of 13 countries where international labour force survey (or equivalent) data were accessed, relative skills prices (the premium in wages for having a university degree), and quantities (degree share) were estimated at the region level. Such measures of skill supply have been linked to organizational practices and technology in previous papers, including decentralization (Caroli and Van Reenen, 2001) and computer adoption (Beaudry et al., 2010). ...
The empirical management literature has found that the education of both managers and the workforce more generally appears to be an important driver of better management practices. This article sets out how such relationships might be conceptualized, and suggests that in a complementarities framework, modern management practices can be thought of as a type of skill-biased technology. It then summarizes the literature that has explored the relationships between human capital and surveyed management practices in manufacturing firms and other sectors, highlighting the handful of papers that have found a positive correlation between management practices and measures of local skills supply. It concludes with a discussion of the policy implications that stem from what we know so far, together with avenues for future research that could shed more light on the causal mechanisms at play.
... 13 On the sub-sample of 13 countries where international labour force survey (or equivalent) data were accessed, relative skills prices (the premium in wages for having a university degree), and quantities (degree share) were estimated at the region level. Such measures of skill supply have been linked to organizational practices and technology in previous papers, including decentralization (Caroli and Van Reenen, 2001) and computer adoption (Beaudry et al., 2010). ...
... Instead it is adopted in environments where complementary factors are plentiful and cheap. Beaudry et al. (2010) find that US cities with low skill premia adopted computers more intensively, and Garicano and Heaton (2010) find evidence of complementarity between IT and skilled workers in US police departments. ...
This paper investigates the link between management practices and workforce skills in manufacturing firms, exploiting geographical variation in the supply of human capital. Skills measures are constructed using newly compiled data on universities and regional labour markets across 19 countries. Consistent with management practices being complementary with skills, we show that firms further away from universities employ fewer skilled workers and are worse managed, even after controlling for a rich set of observables and fixed effects. Analysis using regional skill premia suggests that variation in the price of skill drives these relationships.
... To test the deduced hypotheses, the economists estimate a simple regression that describes the change in the output of a region between 1980 and 2000 as a function of output at the beginning of the period and a logarithm of the wage gap between college and high school. Beaudry, Doms, and Lewis (2010: 1008-1010 control for some other variables in other regressions. Hypothesis testing proceeds by comparing the deductions from the theoretical model with relevant parameters of econometric models. ...
... Until this point, the story told in the article is in line with Popperian falsificationism. In fact, the authors discuss their actions as an "attempt to falsify" (Beaudry, Doms, Lewis 2010: 1012 the predictions of the theoretical model. ...
... By contrast, the other two pieces of economic research (discussed in sections 4 and 5) reject this view and aim to establish theoretical models that produce observable regularities. Jovanovic and Szentes (2013) and Beaudry, Doms, and Lewis (2010) share the view that the purpose of theoretical models is to reproduce an observable pattern by means of econometrics. On this basis, it is justifiable to conclude that they do not accept the mainstream view on mechanisms. ...
Recently, two distinct notions of pluralism have been put forward in regard to research methods in economics: (1) model pluralism, stating that economists construct many theoretical models offering descriptions of actual or possible mechanisms and use different models for different purposes, and (2) evidential pluralism, according to which causal claims are established on the basis of theoretical conjecture and by observing the operation of a difference-making factor. In this paper, I make a case for methodological pluralism. I argue that economists not only use different research methods but also interpret their role in causal inference differently — depending on which (big-M) Methodological school they subscribe to. The argument proceeds by analyzing examples of recent economic research appealing to different Methodological commitments.
