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Creative Disruption – Technology innovation, labour demand and the pandemic

Author

Listed:
  • Erling Barth

    (Institute for Social Research, Oslo, and ESOP, Department of Economics, University of Oslo)

  • Alex Bryson

    (University College London, IZA, NIESR)

  • Harald Dale-Olsen

    (Institute for Social Research, Oslo, and IZA)

Abstract
We utilize a new survey on Norwegian firms’ digitalization and technology investments, linked to population-wide register data, to show that the pandemic massively disrupted the technology investment plans of firms, not only postponing investments, but also introducing new technologies. More productive firms innovated, while less productive firms postponed investments. Most innovations were permanent, not due to acceleration of existing plans, thus the pandemic yields long-term influence in directions unanticipated before the pandemic. The new technologies are associated with increased labour demand for skilled workers, and reduced demand for unskilled workers, particularly for the more productive firms

Suggested Citation

  • Erling Barth & Alex Bryson & Harald Dale-Olsen, 2022. "Creative Disruption – Technology innovation, labour demand and the pandemic," DoQSS Working Papers 22-07, Quantitative Social Science - UCL Social Research Institute, University College London.
    • Handle: RePEc:qss:dqsswp:2207
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    References listed on IDEAS

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    Cited by:

    1. Sarra Ben Yahmed & Francesco Berlingieri & Eduard Brüll, 2024. "Local Labour Market Resilience: The Role of Digitalisation and Working from Home," CESifo Working Paper Series 11114, CESifo.
    2. Gathmann, Christina & Kagerl, Christian & Pohlan, Laura & Roth, Duncan, 2024. "The pandemic push: Digital technologies and workforce adjustments," Labour Economics, Elsevier, vol. 89(C).

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    More about this item

    Keywords

    Technology investments; Digitalization; Labour demand; Pandemic; COVID-19;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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