Canonical Correlation Analysis and a New Composite Index on Digitalization and Labor Force in the Context of the Industrial Revolution 4.0

Ane-Mari Androniceanu, Irina Georgescu, Manuela Tvaronavičienė and Armenia Androniceanu
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Ane-Mari Androniceanu: Doctoral School of Management, Bucharest University of Economic Studies, 6, Piata Romana, 010374 Bucharest, Romania
Manuela Tvaronavičienė: Department of Business Economics and Management, Vilnius Gediminas Technical University 11, eLT-10223 Vilnius, Lithuania
Armenia Androniceanu: Department of Administration and Public Management, Bucharest University of Economics, 6, Piata Romana, 010374 Bucharest, Romania

Sustainability, 2020, vol. 12, issue 17, 1-20

Abstract: The current phenomenon of the economy-accelerated digitalization, known as the “Industry 4.0”, will generate both an increased productivity, connectivity and several transformations on the labor force skills. Our research objectives are to determine the influence that digitalization has had on the workforce in several developed countries and to propose a new composite indicator that reflects these dynamics over time. We have used the Canonical Correlation Analysis (CCA) in order to identify and analyze the correlations between two sets of variables, an independent one and a dependent one. Data were collected from the World Bank and World Economic Forum for the years 2018–2019. Based on the results of our research we have determined and made a consistent analysis of the new composite index of digitalization and labor force in 19 countries. The results of our research are relevant and show not only the impact of digitalization on the labor force in different countries, but also the structural changes required by the new economic and social models. Our research can help decision-makers get in advance the necessary measures in the field of labor force in order to ensure a proper integration of these measures into the new economic model based on digitalization.

Keywords: canonical correlation analysis; digitalization; labor force; composite index (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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