EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training

The use of advanced digital technologies such as 3D printing, advanced robotics, drones, big data analytics and artificial intelligence is spreading. These technologies have uncertain implications for labour demand. Affected workers may need to re-train to adapt to changing tasks or new jobs. At the...

Полное описание

Сохранить в:
Библиографические подробности
Главный автор: European Investment Bank
Формат: Online
Язык:английский
Опубликовано: European Investment Bank 2023
Предметы:
Online-ссылка:https://library.oapen.org/handle/20.500.12657/62343
Метки: Добавить метку
Нет меток, Требуется 1-ая метка записи!
_version_ 1869531020723748864
author European Investment Bank
author_browse European Investment Bank
author_facet European Investment Bank
author_sort European Investment Bank
collection Directory of Open Access Books
description The use of advanced digital technologies such as 3D printing, advanced robotics, drones, big data analytics and artificial intelligence is spreading. These technologies have uncertain implications for labour demand. Affected workers may need to re-train to adapt to changing tasks or new jobs. At the same time, it is unclear whether or not advanced digital technologies encourage firms to invest in workforce re-training. Using firm-level data covering the 27 EU countries, the UK and the US, this paper shows that employers tend to reduce investment in training per employee, after adopting advanced digital technologies. It estimates, with a control function approach, firm-level production functions augmented with two factors: training per employee and digital technology use. We show that these are in fact substitutes in production, implying that an increase in the former negatively affects the marginal productivity of the latter, and that a decline in the cost of introducing advanced digital technologies reduces employers’ investment in training per employee. These findings point to challenges in realising high levels of firm-sponsored training for employees in increasingly digital economies.
format Online
id doab-20.500.12854ir-99445
institution Directory of Open Access Books
language eng
publishDate 2023
publishDateRange 2023
publishDateSort 2023
publisher European Investment Bank
publisherStr European Investment Bank
record_format ojs
spelling doab-20.500.12854ir-994452024-03-30T02:53:18Z EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training European Investment Bank Business & Economics Banks & Banking thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking The use of advanced digital technologies such as 3D printing, advanced robotics, drones, big data analytics and artificial intelligence is spreading. These technologies have uncertain implications for labour demand. Affected workers may need to re-train to adapt to changing tasks or new jobs. At the same time, it is unclear whether or not advanced digital technologies encourage firms to invest in workforce re-training. Using firm-level data covering the 27 EU countries, the UK and the US, this paper shows that employers tend to reduce investment in training per employee, after adopting advanced digital technologies. It estimates, with a control function approach, firm-level production functions augmented with two factors: training per employee and digital technology use. We show that these are in fact substitutes in production, implying that an increase in the former negatively affects the marginal productivity of the latter, and that a decline in the cost of introducing advanced digital technologies reduces employers’ investment in training per employee. These findings point to challenges in realising high levels of firm-sponsored training for employees in increasingly digital economies. 2023-04-18T11:08:16Z 2023-04-18T11:08:16Z 2023-04-12T05:34:19Z 2023 book https://library.oapen.org/handle/20.500.12657/62343 https://directory.doabooks.org/handle/20.500.12854/99445 eng open access image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International https://library.oapen.org/bitstream/handle/20.500.12657/76672/20230008_economics_working_paper_2023_01_en.pdf?sequence=1&isAllowed=y European Investment Bank European Investment Bank 10.2867/16937 10.2867/16937 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 969f21b5-ac00-4517-9de2-44973eec6874 Knowledge Unlatched (KU) European Investment Bank Knowledge Unlatched open access
spellingShingle Business & Economics
Banks & Banking
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking
European Investment Bank
EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training
title EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training
title_full EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training
title_fullStr EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training
title_full_unstemmed EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training
title_short EIB Working Paper 2023/01 - Advanced digital technologies and investment in employee training
title_sort eib working paper 2023 01 advanced digital technologies and investment in employee training
topic Business & Economics
Banks & Banking
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking
topic_facet Business & Economics
Banks & Banking
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking
url https://library.oapen.org/handle/20.500.12657/62343
work_keys_str_mv AT europeaninvestmentbank eibworkingpaper202301advanceddigitaltechnologiesandinvestmentinemployeetraining