Full Citation

Title: IT shields: Technology adoption and economic resilience during the COVID-19 pandemic

Citation Type: Journal Article

Publication Year: 2023

ISBN:

ISSN: 0927-5371

DOI: 10.1016/J.LABECO.2023.102330

NSFID:

PMCID:

PMID:

Abstract: We study the labor market effects of information technology (IT) during the onset of the COVID-19 pandemic, using data on IT adoption covering almost three million establishments in the US. We find that in areas where firms had adopted more IT before the pandemic, the unemployment rate rose less in response to social distancing. IT shields all individuals, regardless of gender and race, except those with the lowest educational attainment. Instrumental variable estimates–leveraging historical routine employment share as a booster of IT adoption– confirm IT had a causal impact on fostering labor markets’ resilience. Additional evidence suggests this shielding effect is due to the easiness of working-from-home and to stronger creation of digital jobs in high IT areas.

Url: https://www.sciencedirect.com/science/article/pii/S0927537123000052

User Submitted?: No

Authors: Oikonomou, Myrto; Pierri, Nicola; Timmer, Yannick

Periodical (Full): Labour Economics

Issue:

Volume: 81

Pages: 1-15

Data Collections: IPUMS CPS

Topics: Health, Labor Force and Occupational Structure

Countries: