Economics, Econometrics and Finance
4 years ago

Investing in IT boosts high-skilled jobs in service industries.

SSRN Electronic Journal
The Impact of Information Technology on High-Skilled Labor in Services: Evidence from Firm-Level Panel Data
Martin Falk, Katja Seim

Paper Summary

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The study looked at how investing in information technology affects the number of highly skilled workers in service industries. They used data from over 900 German firms from 1994 to 1996. The results showed that companies that spend more on IT tend to hire more high-skilled employees, like university graduates. However, the impact of IT on skill levels was not very big.