Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306910 
Year of Publication: 
2024
Series/Report no.: 
CeMPA Working Paper Series No. CeMPA WP 5/24
Publisher: 
University of Essex, Centre for Microsimulation and Policy Analysis (CeMPA), Colchester
Abstract: 
We study the effects of digital transformation in the EU on individual employment outcomes, wage growth, and income inequality, during the decade 2010-2019. Our results allow us to formulate a "conveyor-belt" hypothesis, whereas digital skills are important for finding a job, but less so for retaining it. The ability of out-of-work individuals with higher digital skills to jump back on the labour market is reduced for those with higher education, suggesting a faster depreciation of their digital skills. A similar effect, although of limited size, is found for earning growth: out-of-work individuals with higher digital skills are not only more likely to find a job, but experience higher earning growth, compared to their peers with lower digital skills. Our results point to a vulnerability of workers "left behind" from the digital transformation and the labour market. The overall effects on inequality are, however, limited.
Subjects: 
Digital transformation
digital skills
inequality
employment
wages
EU
JEL: 
J24
J31
D31
Document Type: 
Working Paper

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