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How IT Progress affects Returns to Specialization and Social Skills

Fabienne Kiener, Christian Eggenberger and Uschi Backes-Gellner

No 192, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: We study how information technology (IT) progress affects returns to specialization and social skills by developing a theoretical model and empirically analyzing its implications. Our model shows how IT progress can lead to increasing returns to specialization and social skills. Using rich skill data from Swiss occupational training curricula, we empirically investigate the wage returns to specialization and social skills depending on IT progress in different industries. Our individual fixed-effects analyses show that IT progress leads to increasing wage returns for specialized workers. Furthermore, our results suggest that workers with high shares of social skills benefit from IT progress only if they are also specialized.

Keywords: digitalization; IT progress; skills; education; human capital (search for similar items in EconPapers)
JEL-codes: I26 J24 O33 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2022-04
New Economics Papers: this item is included in nep-hrm, nep-ict, nep-lma and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0192

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