Impact of digitalisation on labour productivity in the EU

Giuseppe Cinquegrana, Giovanni De Luca, Paolo Mazzocchi, Claudio Quintano and Antonella Rocca

International Journal of Business Innovation and Research, 2024, vol. 35, issue 6, 1-39

Abstract: This study attempts to investigate the impact of digitalisation on labour productivity in a sample of EU countries over the years 2014-2019. This sample has been fixed as a function of data availability collected by the European Commission through the digital economic and society index (DESI). Panel data analysis reveals a strong impact of digitalisation on labour productivity. Nevertheless, instrumental variable estimates suggest that digitalisation alone cannot significantly increase labour productivity. We find sizable differences across countries, with the Southern and Eastern European countries lagging behind the Central and Northern European countries, probably because of the low public investment in research and development (R&D) and human capital and the smaller size of firms. Findings suggest, in turn, that it would be useful for policymakers to provide enough support to small-sized firms in R&D and human resources management, especially in Southern and Eastern European countries.

Keywords: labour productivity; digitalisation; digital economic and society index; DESI; panel data analysis; EU. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=142806 (text/html)
Open Access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:35:y:2024:i:6:p:1-39

Access Statistics for this article

More articles in International Journal of Business Innovation and Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().