New technologies, new work practices and the age structure of the workers

There is empirical evidence that suggests that both technology and new work practices are skill-biased. In this paper, we analyse whether they are also age-biased. Does the introduction of new technology and new work practices reduce the demand for older workers and increase the demand for younger workers? The cross-section estimates suggest that technology is age-biased towards young, low-skilled workers. However, after sweeping away time-invariant unobserved firm effects by using a fixed effect approach, most of the significant relationships disappear. This suggests that the significant cross-section results are driven by unobserved heterogeneity between firms and are not causal effects of technology and new work practices on the demand for workers in different age groups.

Published abstract.

There is empirical evidence that suggests that both technology and new work practices are skill-biased. In this paper, we analyse whether they are also age-biased. Does the introduction of new technology and new work practices reduce the demand for older workers and increase the demand for younger workers? The cross-section estimates suggest that technology is age-biased towards young, low-skilled workers. However, after sweeping away time-invariant unobserved firm effects by using a fixed effect approach, most of the significant relationships disappear. This suggests that the ...  [+] Show more