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Technological Change, Organizational Change, and Job Turnover: A Descriptive Analysis of Germany

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Disciplines
  • Economics

Abstract

Technological Change, Organizational Change, and Job Turnover: A Descriptive Analysis for Germany � Thomas K. Bauer y (IZA, Bonn, University of Bonn and CEPR, London) and Stefan Bender z (IAB, N urnberg) February 2002 Very Preliminary - Do Not Cite Abstract Increased trade with developing countries and skill-biased technological change are the two most prominent explanations for the increase in the relative demand for skilled labor observed in most industrialized countries. A more recent literature suggest that High Performance Work Organiza- tions (HPWOs) are complementary to skills and the increasing use of these practices could provide an additional explanation of the rise in the relative demand for skilled labor. Most studies in this area use a standard static labor demand framework to investigate the employment e�ects of techno- logical and organizational change. This empirical approach might mask important heterogeneity and asymmetry patterns in employment creation and destruction. This paper uses a German employer-employee-matched panel data set to provide a descriptive analysis of the employment adjustment patterns which arise when �rms introduce new IT technologies and HPWOs. Di�erent to the existing literature this paper focuses on gross job and worker ows involved with techno- logical and organizational change to obtain a more detailed picture of the employment adjustment patterns arising through these changes. The empirical results indicate that di�erent exible work- place practices and investments in IT have very di�erent e�ects on job and worker ows and that these e�ects di�er across skill-groups. Keywords: Linked-Employer-Employee Data Set, Information Technology, Organizational Change, Job Turnover, Worker Turnover JEL classi�cation: J63, L23, O33 � Parts of this paper have been written while Stefan Bender was visiting the IZA. y Institute for the Study of Labor (IZA), P.O. Box 7240, 53072 Bonn, Germany, E-m

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