Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296076.2 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 10987
Version Description: 
This Version: June 2025
Publisher: 
CESifo GmbH, Munich
Abstract: 
This paper analyzes how the impacts of ICT, Software & Databases, and Robots on European regional labor markets (1995-2017) vary across technology life cycle phases. Motivated by theories predicting shifting skill biases between early adoption and maturity, we first identify major technological breakthroughs and delineate their life cycle phases (early vs. maturity) based on investment growth patterns. Using a shift-share instrumental variable approach, we estimate phase-specific impacts of regional technology exposure on employment and wages. While confirming that effects differ significantly across phases, we find only partial support for standard skill-bias predictions during early adoption. Our results highlight the importance of analyzing dynamics within specific technology life cycles to understand the heterogeneous short-term labor market adjustments often obscured in aggregated long-run analyses.
Subjects: 
automation
technology life cycle
employment
wages
ICT
robot
JEL: 
J21
O33
J31
Document Type: 
Working Paper
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2 10419/296076.2 Revised Version: June 2025
1 10419/296076 Original Version: March 2024

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