Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24340
Authors: 
Falk, Martin
Seim, Katja
Year of Publication: 
1999
Series/Report no.: 
ZEW Discussion Papers 99-58
Abstract: 
This paper analyses the link between the high-skilled employment share and the level of investment in information technology (IT) in the service production process. The analysis is based on an unbalanced panel data set for 933 West German firms over the period 1994-1996. To account for firms which do not employ high-skilled labor, proxied by university graduates, fixed and random effects Tobit models are applied. We investigate whether the importance of IT varies across subsectors by allowing coefficients to differ across the main service sector industries. The empirical evidence indicates that firms with a higher IT investment to output ratio employ a larger fraction of high-skilled workers. However, the size of the IT effect on skill intensity is rather small.
Subjects: 
demand for high-skilled labor
information technology
service sector
panel data
JEL: 
L8
J23
O33
Document Type: 
Working Paper

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