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Labor Demand and ICT Adoption in Spain

Manuel Hidalgo (), Jesús Rodríguez-López () and José M. Okean ()
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José M. Okean: U. Pablo de Olavide

No 15.10, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: Spain is delayed in adopting information and communication technologies (ICT) and its productivity per hour worked presents a downward trend since the mid 90s. In this paper we argue that these two facts are related. Using the EU KLEMS dataset we test the capital-skill complementarity hypothesis in a cross-section of sectors in Spain. We find that the substitutability between workers and ICT assets falls as worker skill level rises, and that this feature holds across all sectors. Further- more, the ICT assets are complementary with skilled workers. The fraction of workers employed with medium and high skills across sectors rose by 21% and 12%, respectively, to the disadvantage of low skilled workers, due to an adjustment within sectors more than to a composition effect between sectors. Finally, using a regression analysis, we conclude that some labor market institutions are likely behind the evolution of sectorial productivity and ICT investment in Spain.

Keywords: Productivity; TFP; ICT; education (search for similar items in EconPapers)
JEL-codes: I24 J24 O40 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2015-07
New Economics Papers: this item is included in nep-cse, nep-eff, nep-eur, nep-ict and nep-lma
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:15.10

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