This study explores the relationship between ICT development and the unemployment rate in a cross-country setup. The relationship between the development of ICTs and human labour has always been debated among researchers. The debate revolves around whether ICT substitutes or complements human labour. This relationship still has not ended at a meeting point. This study utilizes the ICT index from International Telecommunication Unit to capture broader coverage of ICT development in the country. This index arguably improves the accuracy and comparability of variable measurement. Furthermore, this research conducts a heterogeneity analysis of ICT's impact by considering the unemployed education level and the country's development stage. The empirical method employs in panel data setup, namely Fixed Effect Model. The data consist of 57 countries in the period 2015-2017. Interestingly, this study finds that ICT development corresponds to a decrease in total unemployment by 1%, with the largest effect on unemployed with medium education. By heterogeneity analysis, this beneficial effect is only applied in developed countries. The study results indicate that the developing country should be more cautious and adaptive in mitigating the rapid ICT waves.
Full text article
Atasoy, H. (2013). The effects of broadband internet expansion on labor market outcomes. Industrial and Labor Relations Review, 66(2), 315–345. https://doi.org/10.1177/001979391306600202
Balsmeier, B., & Woerter, M. (2019). Is this time different? How digitalization influences job creation and destruction. Research Policy, 48(8), 103765. https://doi.org/10.1016/j.respol.2019.03.010
Bessen, J. (2019). Automation and jobs: when technology boosts employment. Economic Policy, 34(100), 589–626. https://doi.org/10.1093/EPOLIC/EIAA001
Chinoracký, R., & ?orejová, T. (2019). Impact of digital technologies on labor market and the transport sector. Transportation Research Procedia, 40, 994–1001. https://doi.org/10.1016/j.trpro.2019.07.139
Crandall, R., Lehr, W., & Litan, R. (2007). The effects of broadband deployment on output and employment: A cross-sectional analysis of U.S. data. Issues in Economic Policy, 6(6), 1–34.
De Stefano, T., Kneller, R., & Timmis, J. (2014). The (Fuzzy) Digital Divide?: The Effect of Broadband Internet Use on U.K. Firm Performance. University of Nottingham Discussion Papers, 14/06.
Evangelista, R., Guerrieri, P., & Meliciani, V. (2014). The economic impact of digital technologies in Europe. Economics of Innovation and New Technology, 23(8), 802–824. https://doi.org/10.1080/10438599.2014.918438
Falk, M., & Biagi, F. (2017). Relative demand for highly skilled workers and use of different ICT technologies. Applied Economics, 49(9), 903–914. https://doi.org/10.1080/00036846.2016.1208357
Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerization? Technological Forecasting and Social Change, 114, 254–280. https://doi.org/10.1016/j.techfore.2016.08.019
Ing, L. Y., & Grossman, G. M. (2022). Robots and AI: A New Economic Era. Routledge. https://doi.org/10.4324/9781003275534
ITU. (2012). Impact of broadband on the economy. https://www.itu.int/ITU-D/treg/broadband/ITU-BB-Reports_Impact-of Broadband-on-the-Economy.pdf
Jayakar, K., & Park, E.-A. (2013). Broadband availability and employment: an analysis of county-level data from the national broadband map. Journal of Information Policy, 3, 181–200.
OECD. (2019). Preparing for the Changing Nature of Work in the Digital Era. https://www.oecd.org/going-digital/changing-nature-of-work-in-the-digital-era.pdf
Reenen, J. Von. (1997). Employment and technological innovation: evidence from U.K. manufacturing firms. Journal of Labor Economics, 15, 225–284.
Schlogl, L., & Sumner, A. (2020). Disrupted Development and the Future of Inequality in the Age of Automation. Palgrave Macmillan. https://doi.org/10.1007/978-3-030-30131-6
Shideler, D., Badasyan, N., & Taylor, L. (2007). The economic impact of broadband deployment in Kentucky. Regional Economic Development, 88–118.
Suwadji, Y. T. (2020). How is the Internet Usage Pattern among Women Self-Employed? An Analysis of the National Labor Force Survey (Sakernas). Jurnal Ketenagakerjaan, 15(2), 123–139. https://doi.org/10.47198/naker.v15i2.70
Vivarelli, M. (2014). Innovation, employment and skills in advanced and developing countries: A survey of economic literature. Journal of Economic Issues, 48(1), 123–154. https://doi.org/10.2753/JEI0021-3624480106