Wage Inequality, Labour Shares and ICT

Project Description

The project aims to study the role of new information and communication technology (ICT) in the evolution of wage inequality and labour shares in Germany using micro-level data on employees and employers. Computer-related technological progress has dramatically changed the nature of work and is considered as a driving force behind the polarisation of employment and the increase in wage inequality in many countries. Falling ICT prices, driving the reduction in the relative cost of capital, also provide an important explanation for the decline in labour shares in many countries and industries. The study will complement the nascent literature that documents firm heterogeneity in labour shares, and provide novel evidence on how the adoption of ICT may influence labour shares and wages across occupations within firms.

Project duration: May 2019 – September 2020

Research Team

Internal members, ZEW – Leibniz-Centre for European Economic Research, Mannheim:

  • Dr. Sarra Ben Yahmed, ZEW Research Department “Labour Markets and Human Resources”

External members:

  • Prof. Asier Mariscal, PhD, University Carlos III Madrid (Spain)
  • Kevin Ruf, IAB