Skilled labor supply, IT-based technical change and job instability

Luc Behaghel and Julie Moschion ()

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Abstract: In this paper, we provide empirical evidence on the impact of IT diffusion on the stability of employment relationships. We document the evolution of the different components of job instability over a panel of 350 local labor markets in France, from the mid 1970s to the early 2000s. Although workers in more educated local labor markets adopt IT faster, they do not experience any increase in job instability. More specifically, we find no evidence that the faster diffusion of IT is associated with any change in job-to-job transitions, and we find that it is associated with relatively less frequent transitions through unemployment. Overall, the evidence goes against the view that the diffusion of IT has spurred job instability. Combining the local labor market variations with firm data, we argue that these findings can be explained by French firms' strong reliance on training and internal promotion strategies in order to meet the new skills requirement associated with IT diffusion.

Keywords: Technical change; labor turnover; Skill bias; Job security; Internal labor markets (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-bec, nep-eur, nep-lab and nep-lma
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00646595v1
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Related works:
Working Paper: Skilled Labor Supply,IT-Based Technical Change and Job Instability (2016)
Working Paper: Skilled Labor Supply,IT-Based Technical Change and Job Instability (2016)
Working Paper: Skilled Labor Supply, IT-Based Technical Change and Job Instability (2012)
Working Paper: Skilled labor supply, IT-based technical change and job instability (2011)
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