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Workers' Skill Level and Information Technology: A Censored Regression Model

PublisherYale University Press
Format157.0KB PDFDate added23 Apr 2001
Topics Human Capital Management, Resources Mgmt.
Downloads75

This paper analyses the link between educational qualification structure and information technology (IT) in the service production process. The analysis is based on 1996 cross-sectional data for approximately 1,000 West German firms. The empirical evidence indicates that IT capital and high-skilled labor are complements in the production process: firms with higher IT investment output ratios employ a larger fraction of high-skilled workers at the expense of unskilled workers. To a lesser extent, the positive IT effect carries through for workers with vocational degrees including masters and technicians.

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