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Title:Monitoring, information technology and the labor share PDF Logo
Authors:Schneider, Dorothee
Issue Date:2011
Series/Report no.:SFB 649 discussion paper 2011-066
Abstract:This paper assesses empirically the hypotheses by Bental and Demougin (2010) that innovations in ICT (Information and Communication Technology) reduce the labor share in OECD countries by improving the monitoring technology. In a first step, I show that data trends for the labor share, wages in effciency units, and labor in effciency units over capital can be matched by a simulation of the model of Bental and Demougin (2010). In a second approach, I confirm increasing monitoring of workers using micro data for Germany. I argue that ICT in uences labor not only through substitutability of labor with ICT and foreign work, but also through to lowering rents of workers as monitoring technology improves.
Subjects:labor shares
bargaining
monitoring
JEL:D24
J30
E25
Document Type:Working Paper
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

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