The impact of a decade of digital transformation on employment, wages, and inequality in the EU: a “conveyor belt” hypothesis

Publication type

CeMPA Working Paper Series

Series Number

CCEMPA5/24

Series

CeMPA Working Paper Series

Authors

Publication date

May 11, 2024

Abstract:

We study the effects of digital transformation in the EU on individual employment outcomes, wage growth, and income inequality, during the decade 2010-2019. Our results allow us to formulate a “conveyor-belt” hypothesis, whereas digital skills are important for finding a job, but less so for retaining it. The ability of out-of-work individuals with higher digital skills to jump back on the labour market is reduced for those with higher education, suggesting a faster depreciation of their digital skills. A similar effect, although of limited size, is found for earning growth: out-of-work individuals with higher digital skills are not only more likely to find a job, but experience higher earning growth, compared to their peers with lower digital skills. Our results point to a vulnerability of workers “left behind” from the digital transformation and the labour market. The overall effects on inequality are, however, limited.

Subjects

Paper download   Citation  

#578227

---

Related Publications

• The impact of a decade of digital transformation on employment, wages, and inequality in the EU: a “conveyor belt” hypothesis

  1. Matteo Richiardi
  2. Leonie Westhoff
  3. Caterina Astarita
  4. Ekkehard Ernst
  5. Clare Fenwick
  6. Neysan Khabirpour
  7. Lorenzo Pelizzari

  Journal Article
  March 3, 2025