Computers, Skills and Wages

Computer use is mainly associated with skilled, high-wage workers. Furthermore, the introduction of computers leads to upgrading of skill requirements. This suggests that the computer requires certain skills to take full advantage of its possibilities. Empirical findings, however, suggest that the effects of computers on the labor market are complicated and difficult to trace. This paper offers a simple model and new empirical evidence from Britain showing how computers change the labor market. The model shows that wages are an important determinant of computer use and that neither computer skills nor complementary skills seem to be needed to explain skill upgrading. The empirical results are consistent with the model because they indicate that computer use is explained by wages rather than by skills and that wages are not related to computer skills. Keywords: Wage Differentials by Skill; Computer Use and Skill. JEL Classification: J30; J31.education, training and the labour market;

How computerizaton changes the UK Labour Market: The Facts viewed from a new Perspective

The digitisation of the world as a result of the introduction of computers, chips, and ICT, has undoubtedly been the most important technological development of the past few decades. The fact that more and more workers use computers has led to the conclusion that computer skills are becoming a key to social success. The aim of this paper is to contribute to the discussion of the effects of computerization on work. Our main conclusions are that the fear of a digital split in society appears unjustified. Although computers initially find their way primarily to the higher educated, practically all workers eventually end up working with computers. Absence of computer skills probably plays no role during this process of computerization. This does not mean, however, that there is no need for policies to optimise the economic potential of computers and ICT in general. Firstly, a properly developed infrastructure may be of importance for a rapid diffusion of the possibilities offered by ICT. This applies not only to the physical networks, but also to the availability of software and information. In addition, it may be expected that the educational requirements for workers will increase across the board and there will be changes in the knowledge and skills that people need to have. These are not primarily computer skills, but concern a much wider shift in the importance of various skills. Adjusting adequately to these changes requires reliable data. What is being measured and how the measurements are taken, will need to change considerably.education, training and the labour market;

What happens when agent T gets a computer?

During the last decade a great many authors have shown that computers have a large impact on skill demand, production processes, and the organization and intensity of work. Analyses have indicated that the rates of change of these variables have been the largest in the more computer-intensive sectors. Empirical findings, however, suggest that the effects of computers on the labor market are complicated and difficult to trace. This paper offers a simple model to explain how computers have changed the labor market. The model demonstrates that wage differentials between computer users and other workers are consistent with the observation that computers are first introduced in high-wage jobs because of cost efficiency. It also shows that neither computer skills nor complementary skills are needed to explain skill upgrading, changes in product characteristics, and the organization and intensity of work. Finally, it is shown that these findings shed a different light on the way computers have changed the labor market and on the changes to be expected following the further diffusion of computers.education, training and the labour market;

Systems of innovation

We review the literature on national innovation systems. We first focus on the emergence of the concept of innovation systems, reviewing its historical origins and three main flavours (associated to three “founding fathers†of the concept). After this, we discuss how the notion of innovation systems filled a need for providing a broader basis for innovation policy. We conclude with some perspectives on the future of the innovation systems literature.

Costs and benefits of an individual learning account (ILA):A simulation analysis for the Netherlands

This study analyses costs and benefits of a public-private funded individual learning account (ILA) for the labour force in the Netherlands. We consider an ILA that is funded by subsidies targeted at low- and medium-educated workers and co-funded by training levies as a share of the wage bill. We simulate two alternative steady-state scenarios about the uptake of resources and increase in training activity, using a lifecycle model of human capital investments. We derive predictions for gross earnings, income inequality and costs (training subsidies and tax deductions) and benefits (tax revenues and fewer unemployment benefits). Our results show how the balance of costs and benefits depends on the interplay between take-up rates, returns to training and the deadweight loss of subsidizing an ILA for the whole labour force. Our model and results contribute to policy trade-offs about the introduction of ILA's to stimulate the resilience of the labour force

Hoe computerisering de arbeidsmarkt verandert: de feiten op een rij vanuit een nieuw raamwerk

De digitalisering van de wereld, als gevolg van de introductie van computers, chips en moderne informatie- en communicatietechnologie (ICT), is ongetwijfeld de belangrijkste technologische ontwikkeling van de afgelopen decennia. Op grond van het feit dat steeds meer werkenden met computers te maken krijgen, wordt vaak de conclusie getrokken dat computervaardigheden steeds meer de sleutel tot maatschappelijk succes zullen gaan worden. Het doel van deze paper is een bijdrage te leveren aan de discussie over de invloed van ICT op werk. De belangrijkste conclusies zijn dat de vrees voor een tweedeling in de maatschappij ongegrond lijkt. Hoewel computers aanvankelijk vooral hun intrede doen bij hoger opgeleiden zal na verloop van tijd vrijwel elke werknemer met computers in aanraking komen. Ontbrekende computervaardigheden spelen waarschijnlijk geen belemmerende rol tijdens deze computerisering. Dit betekent echter niet dat er geen beleid gevoerd hoeft te worden om de economische potentie van ICT zo goed mogelijk te benutten. Allereerst kan een goede ontwikkeling van de infrastructuur van belang zijn voor een snelle diffusie van de mogelijkheden die ICT biedt. Het gaat hierbij niet alleen om de fysieke netwerken, maar ook om de beschikbaarheid van software en informatie. Daarnaast wordt verwacht dat over de gehele linie de opleidingseisen voor werknemers zullen toenemen. Er zullen ook zeker veranderingen optreden in de kennis en vaardigheden waarover mensen dienen te beschikken. Het zal hierbij echter niet in de eerste plaats gaan om computervaardigheden, maar om een veel bredere verschuiving van het belang van diverse vaardigheden in onze samenleving. Om adequaat op deze veranderingen te kunnen inspelen zijn betrouwbare gegevens dus van groot belang. Wat wordt gemeten en de manier waarop gemeten wordt, zal aanzienlijk moeten veranderen.education, training and the labour market;