IT investment and the earnings distribution

Tyler Smith

Economists have studied the relationship between technological change and labor market inequality for decades, but most of that research has examined trends at the national level.

In a paper in the American Economic Journal: Macroeconomics, authors Jan EeckhoutChristoph HedtrichRoberto Pinheiro take a different approach by examining how information technology adoption and job displacement vary across metropolitan areas with different housing costs. Their findings reveal that technological change does not affect all places equally and that local housing prices play an important role in determining which jobs disappear and where.

Πηγή: www.aeaweb.org

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