New technologies and the demand for heterogeneous labor: Firm-level evidence for the German business-related services sector

Ulrich Kaiser ()

No 99-07, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper investigates the impact of modern information and communication technologies on the demand for heterogeneous labor. It starts with an interrelated factor demand system. The "desired" level of employment, which is needed in such models, is derived from a generalized Leontief cost function with quasi-fixed factors. Cross-sectional data taken from an innovation survey in the service sector are used in the empirical analysis. The model is estimated by a trivariate ordered probit model. Evidence in favor of skill-biased technological change in the fast growing German business-related services sector is found. The paper suggests a new method of calculating skill- and firm-specific labor cost from information on total labor cost and the share of each skill group in total employment only. It also proposes an approach to calculate long-run elasticities in an ordered probit context.

Keywords: interrelated factor demands; Generalized Leontief cost function; heterogeneous labor demand; business-related services; labor cost decomposition; trivariate ordered probit model (search for similar items in EconPapers)
JEL-codes: C35 D24 J21 L84 (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/130212/1/856637386.pdf (application/pdf)

Related works:
Journal Article: New Technologies And The Demand For Heterogeneous Labor: Firm-Level Evidence For The German Business-Related Service Sector (2000)
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:zbw:zewdip:9907

Access Statistics for this paper

More papers in ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().