Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180890 
Year of Publication: 
2018
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [ISSN:] 1864-6042 [Volume:] 12 [Issue:] 2018-42 [Publisher:] Kiel Institute for the World Economy (IfW) [Place:] Kiel [Year:] 2018 [Pages:] 1-23
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
The wave of digital-industrial innovation which begins to disrupt vast sectors of the global economy has fueled fear of a potential adverse impact on jobs and wages. This paper argues that digitalindustrial innovations make human capital more important than ever and the focus needs to shift to the complementarity between new technologies and human abilities. In particular, more effort should be devoted to (i) understanding what new skills will be needed, and how existing jobs will change; (ii) upgrading education and professional training schemes; (iii) reforming labor market institutions to support a future where a larger share of workers will change jobs and employers more frequently; (iv) reforming social benefits systems and bolstering social safety nets to smooth the economic transition and cushion the impact on the worst-affected workers. This paper presents an analysis of the challenges, addresses the key areas of action, and puts forward specific proposals, including policy actions, industry initiatives, and further research projects. The authors argue that the G20 could and should champion a comprehensive approach to leverage digital-industrial innovations for faster job creation and growth, with initiatives to re-align demand and supply of skills, labor market reforms, redesigned social safety nets, measures to promote digital innovation and facilitate the adoption of skills-augmenting technologies, and strengthened private sector training programs.
Subjects: 
innovation
productivity
technological unemployment
training
education
manufacturing
R&D
investment
JEL: 
J20
J23
J24
J62
J68
O32
O33
M5
I28
E24
D24
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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