ICT, Skills and Organisational Change: Evidence from a Panel of Italian Manufacturing Firms

Abstract

This paper explores the complementarity between skills, organizational change and investments in information and communication technology (ICT). Our work contributes to the literature on the effects of ICT by testing the hypothesis of complementarity in a panel of 540 Italian manufacturing firms during the period 1995-2000. Our analysis provides strong support to the hypothesis of complementarity between skills and ICT (which is at the core of the skill-biased technical change theory). We also find some evidence in favour of the skill-biased organizational change hypothesis. The results obtained by drawing on different statistical methods suggest that interactions among ICT, skills and organizational change are complex and non-linear and difficult to explain.Organisational Change, ICT Investment, Workplace Organization, Human Capital, Productivity