Technological and Organizational Change and the Careers of Workers *

20.500.12592/06qjsr

Technological and Organizational Change and the Careers of Workers *

25 Nov 2022

Focusing next on the effects of T&O on routine and abstract employment shares at the firm level, we find that in firms that implement T&O the employment share of routine jobs 1 See, for example, Autor, Levy, and Murnane (2003), Goos and Manning (2007), the survey by Acemoglu and Autor (2011), and the theoretical contribution of Feng and Graetz (2019). [...] Therefore, ∆? ? ? denotes the decline in the routine employment share among surviving firms; ? 0? denotes the base period employment share of firms that exit between the base and current period; and ? 1? denotes the current period employment share of firms that entered between the base and current period.10 We report the results from this decomposition in Panel A of Table 1, 9 See Section 2.2.3. [...] The results indicate that the decline in the aggregate routine employment share is predominantly a within-firm phenomenon: Within-firm changes account for at least 85% of the decline in the routine employment share among surviving firms and thus at least 80% of the overall decline in the 11 See Section 2.2.2 for a description of the data and sample used in this analysis. [...] Motivated by the finding that the decline in the aggregate routine employment share primarily occurs within firms, our analysis below first explores the link between T&O and the decline in middle wage routine jobs at the level of the firm. [...] The increase in employment is driven by both a decrease in the separation rate (the number of workers leaving the firm over the three-year period divided by employment at baseline) and a (statistically significant) increase in the external hiring rate (the number of workers joining the firm over the three-year period divided by employment at baseline).
Pages
55
Published in
United Kingdom