Do New Digital Technologies Generate or Kill Jobs
To estimate worker-group specific labour demand as a function of firm’s technology investments, we conduct a representative firm survey among about 2.000 firms in Germany. Within the survey, we ask firms about their technology investments between 2011 and 2016. We then link the survey data to employment biographies from social security records of all workers employed in the surveyed firms. We decompose aggregate firm-level employment into a part reflecting capital-labour substitutions and product demand effects. So, we are able to empirically quantify the relative size of job creation and job destruction channels.
Our preliminary estimates suggest that technology investments are not associated with negative aggregate employment effects as job creation and job destruction effects seem to balance out. In particular, certain occupational and task groups benefit from technology, depending on the degree of automation, whereas others workers are replaced. We also find that certain task combinations are responsible for lower and higher group-specific labour demand effects from technology investments.