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Digitalisation and the labour market: Worker-level evidence from Slovenia

This paper provides evidence on the effects of digitalisation on the labour market in Slovenia using a unique dataset of Slovenian workers and firms for the years 2016 to 2020. Results show that at the firm level, digitalisation – measured in terms of ICT investment, is associated with positive and statistically significant effects on employment. However, job growth is not evenly distributed: High-skilled workers and younger workers benefit the most from employment gains, whereas there is little to no employment increases for low- and medium-skilled workers and older workers aged 50 or more. Furthermore, employment effects from digitalisation are strongest for private manufacturing firms. In contrast, ICT investment by state-owned firms is not associated with employment gains.

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Keywords: labour reallocation, employment, wages, ICT investment
JEL: E24: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity; E22: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Investment; Capital; Intangible Capital; Capacity; J62: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Job, Occupational, and Intergenerational Mobility; O33: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Technological Change: Choices and Consequences; Diffusion Processes
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Author(s)
Antonela Miho, Martin Borowiecki and Jens Høj

10 Jul 2023

25 pages

No. 1767

https://doi.org/10.1787/d2bb40db-en

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