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Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence

Open access
Bresnahan, T. F., Brynjolfsson, E., Hitt, L. M.·2002·The Quarterly Journal of Economics

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.

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Citations

Cites

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Metadata

Authors
Bresnahan, T. F., Brynjolfsson, E., & Hitt, L. M.
Venue
The Quarterly Journal of Economics
Published
2002-02-01
Volume
117
Issue
1
Pages
339-376
ISSN
  • 0033-5533 (ISSN-L)
  • 1531-4650
OpenAlex
W2890782667
Cited by
3,211
References
4
FWCI
266.43
Type
journal article
Language
en
Open access
green

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

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