Arbeitspapier
Digital adoption, automation, and labor markets in developing and emerging economies
We document a strong negative link between self-employment and the rate of digital adoption by firms in developing and emerging economies. No link between digital adoption and the unemployment rate is found, however. To explain this evidence, we build a general equilibrium search-and-matching model with endogenous labor force participation, self-employment, endogenous firm entry, and information-and-communications technology adoption. The main finding is that changes in the cost of technology adoption per se cannot rationalize the evidence. Instead, changes in firms' barriers to entry directly linked to the cost of technology adoption are key to explain the data.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2019-22
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Labor Demand
Human Capital; Skills; Occupational Choice; Labor Productivity
Unemployment: Models, Duration, Incidence, and Job Search
Industrialization; Manufacturing and Service Industries; Choice of Technology
digital adoption
automation
labor search frictions
unemployment
self-employment
endogenous firm entry
developing and emerging economies
Mandelman, Federico S.
- DOI
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doi:10.29338/wp2019-22
- Handle
- Last update
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20.09.2024, 8:23 AM CEST
Data provider
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Object type
- Arbeitspapier
Associated
- Finkelstein Shapiro, Alan
- Mandelman, Federico S.
- Federal Reserve Bank of Atlanta
Time of origin
- 2019