Operations, Information and Decisions Papers

Document Type

Journal Article

Date of this Version

2002

Publication Source

The quarterly journal of economics

Volume

117

Issue

1

Start Page

339

Last Page

376

DOI

10.1162/003355302753399526

Abstract

We investigate the hypothesis that the combination of three related innovations—1) information technology (IT), 2) complementary workplace reorganization, and 3) new products and services—constitute a significant skill-biased technical change affecting labor demand in the United States. Using detailed firm-level data, we find evidence of complementarities among all three of these innovations in factor demand and productivity regressions. In addition, firms that adopt these innovations tend to use more skilled labor. The effects of IT on labor demand are greater when IT is combined with the particular organizational investments we identify, highlighting the importance of IT-enabled organizational change.

 

Date Posted: 27 November 2017

This document has been peer reviewed.