Digital technology adoption, productivity gains in adopting firms and sectoral spill-overs: Firm-level evidence from Estonia

Natia Mosiashvili and Jon Pareliussen

No 1638, OECD Economics Department Working Papers from OECD Publishing

Abstract: With a newly constructed firm-level dataset combining various survey- and registry data from Statistics Estonia, this paper sheds new light on the labour productivity premium from adopting digital technologies and boosting digital skill use. The productivity premium is decomposed into a direct effect benefitting the firms actually increasing their digital intensity, and an indirect effect of belonging to a sector with high digital intensity. The firm-level productivity premium of being an adopting firm is consistently positive and sizeable across different digital technologies and measures of skill intensity. The evidence also suggests positive spill-over effects in manufacturing sectors and sectors with a high routine task content and thus a high automation potential.

Keywords: Digitalisation; productivity; skills; training (search for similar items in EconPapers)
JEL-codes: D24 E22 J24 M53 O33 (search for similar items in EconPapers)
Date: 2020-12-16
New Economics Papers: this item is included in nep-bec, nep-cis, nep-eff, nep-eur, nep-ict, nep-mac, nep-sbm, nep-tid and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1638-en

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